Research indicates racial bias in lending

Issuers are providing less credit to consumers in black neighbourhoods than those living in predominantly white areas with similar credit scores, research published by the Boston Federal Reserve finds.

In spite of identical scores, community characteristics and similar risks of non-payment,

people living in black areas have access credit, the research states.

Using an instrumental variables approach to distinguish between issuer-provided credit (supply) and utilisation of credit (demand), the

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