Abstract

http://ssrn.com/abstract=1106179
 
 

References (9)



 


 



Loan Performance of Community Development Financial Institutions (CDFI) Fund Sponsored Institutions


Andreas Rauterkus


University of Alabama at Birmingham

March 14, 2008


Abstract:     
This paper tries to examine the performance of loans made by CDFI sponsored financial institutions. The CDFI program tries to encourage financial institutions to provide credit to high risk, underserved communities and businesses. The CDFI provides grants to participating institutions to entice lending. The purpose of this study is to examine if the loan performance of CDFI sponsored institutions is different from non-sponsored institutions. Given recent issues with sub-prime lending, many lenders are unsure of how best to serve certain customers. The Community Reinvestment Act was designed to encourage lenders to meet the credit needs of the communities in which they operate. More information on how loans specifically made to meet the credit needs of specific communities would help all lenders in making investment decisions. Also, by analyzing the mitigating effect of CDFI Fund programs on loan losses, lenders - particularly non-CDFI certified institutions - would be able to weigh more effectively the costs and benefits associated with lending to higher risk customers. Finally, the study provides an assessment of the CDFI program. Much research has been conducted about other federally sponsored loan programs, such as the programs provide by the Federal Housing Authority and the Small Business Administration. This study will fill a gap by providing an analysis of a third very important federal loan program.

Number of Pages in PDF File: 10

Keywords: loan performance, community lending, high risk loans

JEL Classification: G21, G28

working papers series


Download This Paper

Date posted: March 17, 2008  

Suggested Citation

Rauterkus, Andreas, Loan Performance of Community Development Financial Institutions (CDFI) Fund Sponsored Institutions (March 14, 2008). Available at SSRN: http://ssrn.com/abstract=1106179 or http://dx.doi.org/10.2139/ssrn.1106179

Contact Information

Andreas Rauterkus (Contact Author)
University of Alabama at Birmingham ( email )
COLLAT School of Business
Birmingham, AL 35294
United States
205-934-8811 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 1,594
Downloads: 272
Download Rank: 64,003
References:  9
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.250 seconds