Black Banks: A Survey and Analysis of the Literature

Cole, John A.; Edwards, Alfred L.; Hamilton, Earl G.; Reuben, Lucy J.

doi:10.1007/bf02902608

Cited by 10 publications

(4 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Research suggests a key facet of MOB socially responsible behaviour is found in high levels of risk (Brimmer, 1971;Cole et al, 1985). That risk falls on the deposit side in terms of highly variable deposits, leading MOBs to hold disproportionately high levels of liquidity (Bates and Bradford, 1980).…”

mentioning

confidence: 99%

Minority‐Owned Banks and Bank Failures After the Financial Collapse

Kashian

Drago²

2016

Economic Notes

View full text Add to dashboard Cite

Minority‐owned banks (MOBs) are small banks, which often serve disadvantaged communities of color, and failed at high rates after the financial collapse. The U.S. Census and FDIC data are used to analyse bank failures for 2009–2014, with predictors from 2008, using logistic regression for estimation. Failure rates were high among Black and Asian American–owned banks; these are related to bank failures in African American communities and concentration in commercial real estate lending; policy responses to the collapse were generally ineffective for small banks. We conclude that policy support for MOBs operating in disadvantaged communities of color is warranted.

show abstract

mentioning

confidence: 99%

Minority‐Owned Banks and Bank Failures After the Financial Collapse

Kashian

Drago²

2016

Economic Notes

View full text Add to dashboard Cite

show abstract

“…MDIs have been extensively studied, as researchers attempted to examine various characteristics of these institutions and whether they fulfill the FDIC's stated objectives for their promotion, that is, supporting economic viability and stability of the diverse ethnic communities that they serve (e.g. Black et al , 2003; Brimmer, 1971; Cole, 1985; Dymski et al , 2010; Kashian et al , 2014b; Kashian and Drago, 2016; Kwast and Black, 1983).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

“…With respect to specific minority groups, African American-owned banks have been the most frequently studied to date (e.g. Brimmer, 1971, 1992; Bates and Bradford, 1980; Cole, 1985; Kashian et al , 2014a). There has been some research related to Native American-owned banks (Buckley and Kashian, 2019; Cyree et al , 2004; Vinje, 1996).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

The role of specific heritage among Hispanic-owned banks in America

Kashian

Kamal

Xue

2020

View full text Add to dashboard Cite

PurposeSpecific types of Hispanic-owned banks (HOBs), including those related to Brazilian, Cuban, Mexican or Puerto Rican heritage, have not be analyzed to date. There are important differences between the relevant communities, including geographic location, language barriers, population size and the importance of remittances to foreign nations. The analysis here sheds light on these differences.Design/methodology/approachHOBs with the Federal Deposit Insurance Corporation (FDIC)-designated minority-owned depository institution (MDI) designation are identified, along with bank ownership heritage. Financial data, a measure of market competition, and demographics of depositors from 2003 to 2017 are utilized in an exploratory analysis comparing banks by HOB type, with random effects regressions for the pre-collapse (2003–2006) and post-collapse (2009–2017) periods.FindingsAlthough each of the four types of HOBs serve Hispanic and poor communities, there are substantial differences. For example, Brazilian and Puerto Rican banks on the island held high levels of nonperforming loans (NPLs) post-collapse, with the Brazilian and Mexican banks expanding levels of risky commercial real estate (CRE) lending post-collapse, while the Cuban banks contracted CRE lending. Differences in terms of return on assets (ROAs), the cost of borrowed funds and the tier-1 risk-based capital ratio are also identified.Social implicationsHOBs, like Latinos in the USA, are culturally heterogeneous and likely operate in different ways depending upon the culture and economic circumstances of the communities where they operate.Originality/valueAlthough there is substantial research on MDIs, this is the first analysis which treats HOBs as culturally heterogeneous. Further research of this type is warranted.

show abstract

“…Within the types of minority owned banks identified under Section 308 of FIRREA, African American-owned banks have been the most extensively studied to date (for example, Brimmer 1971;Bates and Bradford 1980;Cole 1985;Brimmer 1992;Kashian et al 2014). A few studies have examined minority-owned banks as a group (for example, Black et al 2003;Dymski et al 2010;Kashian and Drago 2016), or two groups (for example, Dymski and Mohanty 1999).…”

Section: Literature Reviewmentioning

confidence: 99%

Ownership characteristics of Asian American banks

2018

View full text Add to dashboard Cite

Existing research has established that minority banks and depository institutions are concentrated in minority-populated areas, tend to serve the interests, and ensure the economic viability of the minority populations, primarily through cultural affinity. However, this research has mostly focused on African American banks. In this paper, we attempt to understand the characteristics of Asian American Owned Banks (AAOBs) and how they differ from mainstream banks. Our results show that AAOBs generally tend to perform better than mainstream banks. A closer look at the ethnic breakdown of AAOBs reveals that Indian American banks perform better as they tend to serve a financially better off Indian American population. On the other hand, Korean American banks tend to take on more risk. Overall, AAOBs are more risk averse than mainstream banks. These unique characteristics of AAOBs have regulatory and governance implications.

show abstract

Black Banks: A Survey and Analysis of the Literature

Cited by 10 publications

References 11 publications

Minority‐Owned Banks and Bank Failures After the Financial Collapse

Minority‐Owned Banks and Bank Failures After the Financial Collapse

The role of specific heritage among Hispanic-owned banks in America

Ownership characteristics of Asian American banks

Contact Info

Product

Resources

About