Pushed Out: When Banks Leave Black & Hispanic Neighborhoods

• In Event: Neighborhoods, Housing and Local Politics

Abstract

Over the past decade, online banking or e-banking has gained popularity and championed as a solution to increase security and access to equity. Mobile phone usage across demographics are increasing and in some neighborhoods, full service branches are closing, relocating or being replaced by ATM-only banking options. As this shift continues to take place, the impact on majority-minority communities and communities of interest needs attention. This paper seeks to examine the correlation between bank closures and the relocation of banks from majority-minority communities and communities of interest, by examining census tract data from 2005 to 2018 including home prices and lending data from the Community Reinvestment Act, to determine whether or not there is a relationship and/or disparate impact when full service banking instutions leave majority-minority neighborhoods.

Author

• Michael O. Adams, Texas Southern University