Violence, Positive Political Developments, and Financial Market Participation: Evidence from the Freedman's Savings Bank
29 Pages Posted: 23 Mar 2023
Date Written: March 16, 2023
Using a detailed depositor arrival data from the Freedman's Savings Bank, we examine how social unrest impacts policy makers' goals of increased financial participation and economic integration for minorities. We find that events that imperil public safety also decrease participation in banks. Alternatively, events that increase social stability increase the arrival of new depositors at the bank. We show that these differences in participation occur along racial lines during violent events. Our results demonstrate how social conditions can alter participation in the banking system.
Keywords: violence, banking participation, minority banking, historical finance
JEL Classification: G51, G53, G41, N11, O16
Suggested Citation: Suggested Citation