COVID-19 and Its Impact on Minority-Owned Banks
- (pp. 313-18)
Abstract
Employing a difference-in-differences framework, we examine the effect of COVID-19 on various performance metrics of minority-owned banks relative to peer banks. We find little evidence of worsening performance of minority-owned banks, except for Asian-owned banks. In some instances, minority banks show improved performance. We find a decline in nonperforming single-family residential loans for Hispanic-owned banks. Moreover, minority banks have disbursed more Paycheck Protection Program (PPP) loans than their matched non-minority counterparts. Their resilient performance indicates that minority banks are well positioned to aid in the ongoing economic recovery.Citation
Contreras, Salvador, and Amit Ghosh. 2022. "COVID-19 and Its Impact on Minority-Owned Banks." AEA Papers and Proceedings, 112: 313-18. DOI: 10.1257/pandp.20221114Additional Materials
JEL Classification
- E32 Business Fluctuations; Cycles
- E63 Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- I12 Health Behavior
- I18 Health: Government Policy; Regulation; Public Health
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination