Banking Deregulation and Discrimination in Mortgage Lending

33 Pages Posted: 9 Oct 2019

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Date Written: September 28, 2019

Abstract

This paper examines how interstate banking deregulation affects mortgage lending to minorities. I find that the mortgage approval rates for African Americans, compared with other borrowers, decrease after interstate banking deregulation. I also find that the effect is only present in out-of-state banks, but not in in-state banks or non-bank lenders, suggesting that the effect is driven by the strengthening of the bank balance sheet after deregulation, but not by the increased competition. Further analyses show that the effect is stronger for banks with weaker balance sheets before deregulation.

Keywords: Lending Discrimination, HMDA, Banking Deregulation

JEL Classification: G21, G28, J16

Suggested Citation

Chu, Yongqiang, Banking Deregulation and Discrimination in Mortgage Lending (September 28, 2019). Available at SSRN: https://ssrn.com/abstract=3461059 or http://dx.doi.org/10.2139/ssrn.3461059

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

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