Big Banks are pulling out of lower-income neighborhoods.

[uncharted]

Big banks have been closing branches in lower-income areas and shifting more of their attention to wealthier ones, according to a new report from Bloomberg.

Overall, there’s been a trend among the biggest banks—specifically J.P. Morgan Chase, Wells Fargo, and Bank of America—to reduce their branch networks. Relying on ATMs and online banking is less expensive.
According to S&P Global data analyzed by Bloomberg, banks have shut 1,915 more branches in lower-income areas than they opened between 2014 and 2018, with J.P. Morgan, Wells Fargo, and Bank of America at the front of the trend.

There are broad implications for neighborhoods when branches close. Less competition means fewer choices for banking services and, potentially, higher costs as a result. According to a 2014 study by economist Hoai-Luu Q. Nguyen, now an assistant professor of business at the University of California, Berkeley, the number of small business loans made drops by 13% for several years and isn’t offset by the entry of other banks

More here.

 

[oyarde]

If I was a big bank I would never have been in a low income area .

 

[Superfluous Man]

Congress and Federal Reserve, this is your cue to pass legislation to help big banks bear higher risks in giving loans to more poor people.

Again.

 

[devil21]

I've noticed this. Two branches of the bank I use (only as much as absolutely necessary) have recently closed branches in low-income areas. It's also merging with another regional bank. Mergers, branch closures...gee, it's like they're expecting something.

 

[brushfire]

30 year fixed rate is at 4.5
30 year jumbo is at 3.32

Higher risk / lower rate. That was something I'd noticed during the last recession. What bank wants to be sitting on sh!tty assets when they get bailed out?

 

[Jamesiv1]

I predicted this would happen.