M-RCBG Associate Working Paper No. 32
Incubating Inner-City Branches for Acquisition by Financial Institutions
Given the current aversion for risks by banks, opening new branches in Low and Middle Income (LMI) neighborhoods does not constitute a priority. Despite the shrinking number of community banks and of local banks, this report relies on the premise that these banks are more adequate at bringing customers with banking services to open a bank account. However, regulatory hurdles impede the way to this outcome.