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Federal Reserve Bank of Chicago
Economic Perspectives
Minority-Owned Banks and Their Primary Local Market Areas
Maude Toussaint-Comeau
Robin G. Newberger

In this article, we analyze the experience and performance of MDIs in their primary local service areas in recent periods, including before, during, and after the 2008 financial crisis. We provide a review of the sector, highlighting key policies and initiatives pertaining to and affecting these institutions, and provide a brief review of previous research. We document trends in the sector, including: 1) the characteristics of the locations where MDIs tend to do business; 2) the changing landscape of MDIs in terms of openings, closings, and mergers by ethnic ownership; and 3) the performance of MDIs as measured by selected financial ratios, including loan quality, operating income, and funding sources. We present these trends over time, comparing MDIs with nonminority-owned (non-MDI) community banks.

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Maude Toussaint-Comeau & Robin G. Newberger, "Minority-Owned Banks and Their Primary Local Market Areas" , Federal Reserve Bank of Chicago, Economic Perspectives, issue 4, pages 1-31, 2017.
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Keywords: African-American; community banks; financial crisis; minority-owned bank
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