Color and credit: Race, regulation, and the quality of financial services *

• 成果类型: Article
• 署名作者: Begley, Taylor A.; Purnanandam, Amiyatosh
• 署名单位: Washington University (WUSTL); University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.03.001
• 发表日期: 2021
• 页码: 48-65
• 关键词: product quality; DISCRIMINATION; regulation; Consumer protection

摘要

A B S T R A C T The incidence of misselling, fraud, and poor customer service by retail banks is significantly higher in areas with higher proportions of poor and minority borrowers and in areas where government regulation promotes an increased quantity of lending. Specifically, low-to-moderate-income (LMI) areas targeted by the Community Reinvestment Act have significantly worse outcomes, and this effect is larger for LMI areas with a high minority population share. The results highlight an unintended adverse consequence of such quantity-focused regulations on the quality of credit to lower-income and minority customers. (c) 2021 Elsevier B.V. All rights reserved.