Comparing lending decisions of minority-owned and White-owned banks

摘要: Abstract A recent paper by Black, Collins and Cyree [J. Financ. Serv. Res. 11 (1997) 189.] attempted to determine if Black-owned banks discriminated against Black applicants for mortgage credit. They concluded that were more likely be rejected than White when applying credit at a bank. However, the use of Metropolitan Statistical Area (MSA) as geographic delineation from which minority-owned non-minority-owned are compared may not provide narrowly defined market an accurate comparison can made. Here, zip code cluster technique developed Clair [Econ. Rev. (1988) 11.] is used control differences in applicant base result using broader definition such MSA. The results reported this study show contrary Cyree, statistically reject applicants. also considers Asian-owned Hispanic-owned banks. equally Asian applicants, while Hispanic receive