IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v36y2004i2p241-261.html
   My bibliography  Save this article

Financial Institutions in Disadvantaged Areas: A Comparative Analysis of Policies Encouraging Financial Inclusion in Britain and the United States

Author

Listed:
  • J Neill Marshall

    (Centre for Urban and Regional Development, University of Newcastle upon Tyne, Claremont Road, Newcastle upon Tyne NE1 7RU, England)

Abstract

The paper compares British and US government policy initiatives to combat financial exclusion and promote community reinvestment. Financial exclusion, a general term for those who lack financial products, is concentrated in a small number of deprived urban areas in larger cities that are also starved of private sector investment. British policies, though they have drawn on US experience, predominantly treat exclusion as an individual problem and pay insufficient attention to the wider interconnections between people and place that underlie financial exclusion. These are more prominent in the Community Reinvestment Act (CRA) that has led to significant improvements in financial inclusion and community investment in the USA. The CRA is underpinned by a more compartmentalised and locally embedded system of financial regulation. Consolidation in the banking sector and the growth of competition between banks and other financial institutions in an increasingly integrated US financial sector threaten this. British policies seek to provide ‘joined-up’ solutions to financial exclusion in a manner that is more in tune with an integrated financial sector where a small number of large banks compete on a level playing field with other financial institutions. The paper highlights the difficulties that these policies face in enlisting the cooperation of financial institutions.

Suggested Citation

  • J Neill Marshall, 2004. "Financial Institutions in Disadvantaged Areas: A Comparative Analysis of Policies Encouraging Financial Inclusion in Britain and the United States," Environment and Planning A, , vol. 36(2), pages 241-261, February.
  • Handle: RePEc:sae:envira:v:36:y:2004:i:2:p:241-261
    DOI: 10.1068/a3664
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a3664
    Download Restriction: no

    File URL: https://libkey.io/10.1068/a3664?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Glenn B. Canner & Wayne Passmore, "undated". "The Community Reinvestment Act and the Profitability of Mortgage-Oriented Banks," Finance and Economics Discussion Series 1997-07, Board of Governors of the Federal Reserve System (U.S.), revised 10 Dec 2019.
    2. Crockett, Andrew, 2002. "Market discipline and financial stability," Journal of Banking & Finance, Elsevier, vol. 26(5), pages 977-987, May.
    3. Michael Moran, 1991. "The Politics of the Financial Services Revolution," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37789-9, May.
    4. Arthur B. Kennickell & Martha Starr-McCluer & Brian J. Surette, 2000. "Recent Changes in U.S. Family Finances: Results from the 1998 Survey of Consumer Finances," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 86(1), pages .1-29, January.
    5. G A Dymski & J M Veitch, 1996. "Financial Transformation and the Metropolis: Booms, Busts, and Banking in Los Angeles," Environment and Planning A, , vol. 28(7), pages 1233-1260, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wendy Edelberg, 2004. "Risk-based Pricing of Interest Rates in Household Loan Markets," 2004 Meeting Papers 442, Society for Economic Dynamics.
    2. Niall Majury, 2007. "Technology and the Architecture of Markets: Reconfiguring the Canadian Equity Market," Environment and Planning A, , vol. 39(9), pages 2187-2206, September.
    3. Gale, William & Pence, Karen, 2006. "Are Successive Generations Getting Wealthier, and If So, Why?Evidence from the 1990s," MPRA Paper 55502, University Library of Munich, Germany.
    4. Andrew Leyshon & Dawn Burton & David Knights & Catrina Alferoff & Paola Signoretta, 2004. "Towards an Ecology of Retail Financial Services: Understanding the Persistence of Door-to-Door Credit and Insurance Providers," Environment and Planning A, , vol. 36(4), pages 625-645, April.
    5. Song Han, 2011. "Creditor Learning and Discrimination in Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 1-27, October.
    6. Martin Gervais & Manish Pandey, 2008. "Who Cares About Mortgage Interest Deductibility?," Canadian Public Policy, University of Toronto Press, vol. 34(1), pages 1-24, March.
    7. Holger Vieten, 1995. "Auditing in Britain and Germany compared: professions, knowledge and the state," European Accounting Review, Taylor & Francis Journals, vol. 4(3), pages 485-514.
    8. Andrew Sobel, 1997. "Domestic policy choices, political institutional change, and financial globalization-super-1," International Interactions, Taylor & Francis Journals, vol. 24(4), pages 345-377, July.
    9. Moshirian, Fariborz & Wu, Qiongbing, 2009. "Banking industry volatility and banking crises," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(2), pages 351-370, April.
    10. Calomiris, Charles W. & Longhofer, Stanley D. & Miles, William, 2013. "The Housing Wealth Effect: The Crucial Roles of Demographics, Wealth Distribution and Wealth Shares," Critical Finance Review, now publishers, vol. 2(1), pages 049-099, July.
    11. Fehr, Hans & Jokisch, Sabine & Kotlikoff, Laurence J., 2013. "The world’s interconnected demographic/fiscal transition," The Journal of the Economics of Ageing, Elsevier, vol. 1, pages 35-49.
    12. Philip Ashton & Marc Doussard & Rachel Weber, 2016. "Reconstituting the state: City powers and exposures in Chicago’s infrastructure leases," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1384-1400, May.
    13. Anston Rambarran, 2001. "The Scope for Inflation Targeting in a Developing Economy: Feasibility, Implications and Design Issues for Trinidad & Tobago," Money Affairs, CEMLA, vol. 0(1), pages 25-49, January-J.
    14. Paul Hamalainen & Maximilian Hall & Barry Howcroft, 2005. "THIS ARTICLE HAS BEEN RETRACTED A Framework for Market Discipline in Bank Regulatory Design," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(1‐2), pages 183-209, January.
    15. Hurst, Erik & Willen, Paul, 2007. "Social security and unsecured debt," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1273-1297, August.
    16. Emiliano Grossman, 2006. "Europeanization as an Interactive Process: German Public Banks Meet EU State Aid Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 325-348, June.
    17. Stefanos Ioannou & Dariusz Wójcik, 2021. "Finance and growth nexus: An international analysis across cities," Urban Studies, Urban Studies Journal Limited, vol. 58(1), pages 223-242, January.
    18. Edelberg, Wendy, 2006. "Risk-based pricing of interest rates for consumer loans," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2283-2298, November.
    19. John V. Duca, 2005. "Why Have U.S. Households Increasingly Relied On Mutual Funds To Own Equity?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(3), pages 375-396, September.
    20. Jim Buller & Nicole Lindstrom, 2013. "Hedging its Bets: The UK and the Politics of European Financial Services Regulation," New Political Economy, Taylor & Francis Journals, vol. 18(3), pages 391-409, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:36:y:2004:i:2:p:241-261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.