Local preferences affect US bank lending to minorities – research

Ethnic minorities’ credit access is affected by stakeholders, NY Fed paper finds

Lending money

Banks’ lending to ethnic minorities is impacted by how averse their stakeholders are to inequality, researchers at the Federal Reserve Bank of New York find. 

Bank lending to ethnic minorities varies substantially, authors Matteo Crosignani and Hanh Le say in their paper. If stakeholders in the area of a bank branch are more averse to inequality, there is a smaller loan approval gap for minorities. 

Lenders may want to reflect the beliefs and preferences of their stakeholders, the authors say. 


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account