Abstract
Black-owned and white-owned banks are studied to test for lending discrimination based on applicant's race. Using single-equation models the rndings suggest that black-owned banks may utilize applicant race in the mortgage granting decision. The result holds in a naive HMDA model and in an enhanced HMDA model with bank-specirc, demographic, and neighborhood characteristics added.
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Black, H.A., Collins, M.C. & Cyree, K.B. Do Black-Owned Banks Discriminate against Black Borrowers?. Journal of Financial Services Research 11, 189–204 (1997). https://doi.org/10.1023/A:1007943610378
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DOI: https://doi.org/10.1023/A:1007943610378