IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v41y2006i1p106-137.html
   My bibliography  Save this article

The Impact of Banking and Fringe Banking Regulation on the Number of Unbanked Americans

Author

Listed:
  • Ebonya Washington

Abstract

Thirty-five to 45 percent of low-income American households do not possess a bank account. This statistic coupled with claims of price gouging by check cashers has prompted government intervention. I find that state legislation requiring banks to offer low-cost accounts slightly decreases the number of low-income minority unbanked households, but only with a substantial lag. Caps on check-cashing fees also lead to a small, but more immediate, reduction in the number of unbanked among this population. Because price caps may lead to a reduction in supply, welfare effects are indeterminate.

Suggested Citation

  • Ebonya Washington, 2006. "The Impact of Banking and Fringe Banking Regulation on the Number of Unbanked Americans," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
    • Handle: RePEc:uwp:jhriss:v:41:y:2006:i:1:p106-137
    as

    Download full text from publisher

    File URL: http://jhr.uwpress.org/cgi/reprint/XLI/1/106
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eoin McLaughlin & Rowena Pecchenino, 2022. "Fringe banking and financialization: Pawnbroking in pre‐famine and famine Ireland," Economic History Review, Economic History Society, vol. 75(3), pages 903-931, August.
    2. Smriti Rao & Hazel Malapit, 2015. "Gender, Household Structure and Financial Participation in the United States," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 606-620, December.
    3. Katie Fitzpatrick, 2015. "Does “Banking the Unbanked” Help Families to Save? Evidence from the United Kingdom," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 223-249, March.
    4. J. Michael Collins & Jeff Larrimore & Carly Urban, 2021. "Does Access to Bank Accounts as a Minor Improve Financial Capability? Evidence from Minor Bank Account Laws," Finance and Economics Discussion Series 2021-075, Board of Governors of the Federal Reserve System (U.S.).
    5. Kristin Turney & Daniel Schneider, 2016. "Incarceration and Household Asset Ownership," Demography, Springer;Population Association of America (PAA), vol. 53(6), pages 2075-2103, December.
    6. Felipe Kast & Dina Pomeranz, 2013. "Saving More to Borrow Less: Experimental Evidence from Access to Formal Savings Accounts in Chile," Harvard Business School Working Papers 14-001, Harvard Business School, revised Jun 2014.
    7. Jesse Leigh Maniff & W. Blake Marsh, 2017. "Banking on Distributed Ledger Technology: Can It Help Banks Address Financial Inclusion?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 53-77.
    8. J. Michael Collins & Madelaine L’Esperance, 2023. "What do students gain from banks in schools? A field study," Review of Economics of the Household, Springer, vol. 21(2), pages 567-590, June.
    9. Jennifer L. Dlugosz & Brian T. Melzer & Donald P. Morgan, 2021. "Who Pays the Price? Overdraft Fee Ceilings and the Unbanked," Staff Reports 973, Federal Reserve Bank of New York.
    10. Luisa Blanco & Salvador Contreras & Amit Ghosh, 2022. "Impact of Great Recession bank failures on use of financial services among racial/ethnic and income groups," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1574-1598, April.
    11. Giorgia Barboni & Alessandra Cassar & Timothee Demont, 2017. "Financial exclusion in developed countries: a field experiment among migrants and low-income people in Italy," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(2), pages 39-49, September.
    12. Sarah Bohn & Sarah Pearlman, 2013. "Ethnic Concentration and Bank Use in Immigrant Communities," Southern Economic Journal, John Wiley & Sons, vol. 79(4), pages 864-885, April.
    13. Miguel Ampudia & Michael Ehrmann, 2016. "Financial Inclusion—What’s it Worth?," Staff Working Papers 16-30, Bank of Canada.
    14. Craig Gundersen & David R. Just & Katie Fitzpatrick, 2017. "Bank Accounts, Nonbank Financial Transaction Products, and Food Insecurity among Households with Children," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(3), pages 631-658, November.
    15. Judy Postmus & Sara-Beth Plummer & Sarah McMahon & Karen Zurlo, 2013. "Financial Literacy: Building Economic Empowerment with Survivors of Violence," Journal of Family and Economic Issues, Springer, vol. 34(3), pages 275-284, September.
    16. Gandelman, Néstor & Lluberas, Rodrigo & Misail, Daniel & IDB Invest, 2023. "The Impact of a Financial Inclusion Program on Household’s Payment Choice, Savings, and Credit," IDB Publications (Working Papers) 12769, Inter-American Development Bank.
    17. N. D. Albers & A. O. Wren & T. L. Knotts & M. G. Chupp, 2021. "Consumer Perceptions and Pricing Practices for Weddings," Journal of Consumer Policy, Springer, vol. 44(3), pages 407-426, September.
    18. Katie Fitzpatrick, 2015. "The effect of bank account ownership on credit and consumption: Evidence from the UK," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 55-80, July.
    19. Rouse, Marybeth & Batiz-Lazo, Bernardo & Carbo Valverde, Santiago, 2020. "All about the state-Fifty years of innovative technology to deliver an inclusive financial sector," MPRA Paper 102159, University Library of Munich, Germany.

    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:uwp:jhriss:v:41:y:2006:i:1:p106-137. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: http://jhr.uwpress.org/ .

    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.