Community banks: what is their future and why does it matter?
The U.S. banking system has undergone a dramatic restructuring since the 1970s. One of the biggest changes is the reduced number and market share of community banks. The number of banks with less than $1 billion in assets ? a common definition of community bank ? has declined from approximately 14,000 in 1980 to about 7,000 today. Concurrently, the proportion of assets held by the ten largest bank holding companies increased from less than 25 percent to more than 75 percent, while community banks? share fell from about one third of the market to well under one fifth
Capital-raising among minority-owned banks before and after the financial crisis
The financial crisis and recession of 2008-2010 made the availability of capital a significant area of concern for community banks, and led many of these institutions to seek out sources to rebuild their equity.1 The need for capital may have been even greater for some minority-owned financial institutions. Minority-owned depositories are a small subset of financial institutions, most of which are also community banks, reflecting either black, Hispanic, Asian, or Native American ownership, or majority minority board members and a mission to serve minority populations. Regulators have long ...
The impact of poverty on the location of financial establishments: evidence from across-county data
The location of bank branches is an important issue for consumer advocates and other groups that monitor access to financial services for low- and moderate income people. The proximity of banks and their branches to the places where people live and work is one basic element of mainstream financial access. The ability of people to choose from an array of financial products, especially those offered through the banking system, is fundamentally related to the economic well-being of a community.
Credit availability in the Minneapolis-St. Paul Hmong community
Responding to the foreclosure crisis - a conference summary
On December 9?10, 2009, the Federal Reserve Bank of Chicago hosted a conference on mortgage foreclosure policy with the help of the Chicago Community Trust, Neighborhood Housing Services of Chicago, the MacArthur Foundation, and the Woodstock Institute.
Resource Utilization among Black Small Business Owners in Detroit: Results from a Questionnaire
One of the most important ways for small businesses to access capital is through connections to resource networks. Business networks are the set of arrangements and information platforms that business owners use to increase exposure and sales, gain knowledge of their markets, develop financial management skills, and familiarize themselves with sources of financing. Networks can also connect people to other service providers, such as nonprofit organizations and professionals that support business owners through technical and financial training, referrals, legal services and procurement ...
Measuring Small Business Financial Health
Throughout the Great Recession and continuing into the recovery, small businesses have played an important role in creating jobs and stabilizing communities. Stories of small business owners overcoming obstacles to provide valuable services and employment are highlighted regularly by pundits, politicians and policymakers alike. However, little attention has focused on the question of what drives the financial health of these often young, often very small businesses.
Financial access and insurance: a preliminary description of factors that affect immigrants
Providing financial services to immigrants is a growing business for bankers, and a growing area of study for policymakers and researchers. While still an emerging field, most of the attention to financial access thus far has tended to focus on core banking products such as bank account ownership, mortgage loans, and services that immigrants tend to use more often than native-born, such as wire transfers, that banks must market more aggressively than in the past to attract (some) immigrant groups. Insurance is another financial tool that, like accounts and mortgages, helps households ...
Minority-Owned Banks and Their Primary Local Market Areas
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 ...