Violence, Positive Political Developments, and Financial Market Participation: Evidence from the Freedman's Savings Bank

29 Pages Posted: 23 Mar 2023

See all articles by Virginia Traweek

Virginia Traweek

Texas Christian University

Malcolm Wardlaw

University of Georgia

Multiple version iconThere are 2 versions of this paper

Date Written: March 16, 2023

Abstract

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

Traweek, Virginia and Wardlaw, Malcolm, Violence, Positive Political Developments, and Financial Market Participation: Evidence from the Freedman's Savings Bank (March 16, 2023). Available at SSRN: https://ssrn.com/abstract=4390992 or http://dx.doi.org/10.2139/ssrn.4390992

Virginia Traweek (Contact Author)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

Malcolm Wardlaw

University of Georgia ( email )

Athens, GA 30602-6254
United States

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