Skip to main content

Bank Branch Presence and Access to Credit in Low- to Moderate-Income Neighborhoods

Buy Article:

$51.00 plus tax (Refund Policy)


Banks specialize in lending to informationally opaque borrowers by collecting soft information about them. Some researchers claim that this process requires a physical presence in the market to lower information collection costs. This paper provides evidence in support of this argument in the mortgage market for low-income borrowers whose access to credit is limited by their inadequate credit histories. Mortgage originations increase and interest spreads decline when there is a bank branch located in a low- to moderate-income neighborhood.

Keywords: D82; G21; G28; R31; branch presence; mortgage market; relationship lending

Document Type: Research Article


Affiliations: Ozgur Emre Ergungoris a Senior Research Economist, Research Department, Federal Reserve Bank of Cleveland (: )., Email:

Publication date: 2010-10-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more