The Dilemma of Black Banking
Lending Risks Vs. Community Service
Bibliographic Data
| ID | 10430758 |
|---|---|
| Authors | Andrew F Brimmer (corresponding author) |
| Year | 1992 |
| Volume | 20 |
| Issue | 3 |
| Pages | 5-29 |
| Publication date | 1992-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Review of Black Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0034-6446 • E-ISSN: 1936-4814 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1007/bf02689932 |
| OpenAlex | W2034446375 |
| Language | EN |
| Citations received | 6 |
Black-owned banks face a serious dilemma: founded primarily to help fill the gap between the demand for and supply of credit to the black community, the more they try to respond positively, the greater is the probability that they will fail. The paradox arises from the exceptional risks these lenders must assume when they extend credit to individuals who suffer from above-average instability of employment and income, or to black-owned businesses, which have high rates of bankruptcy. The failure of Freedom National Bank in November 1990 illustrates the adverse consequences of assuming excessive risks
Actuarial science · Bankruptcy · Business · Dilemma · Economics · Financial system · Service (business · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism
| Citations per year | 0.19 |
|---|---|
| Citation span | 1995 - 2023 (29) |
| Highly cited | No |