
(AGENPARL) – mar 28 giugno 2022
June 2022
Cost of Banking for LMI and Minority Communities
Marco Migueis, Michael Suher, and Jessie Xu
Abstract:
Bank accounts are critical for participation in the modern economy. However, these accounts frequently require maintenance fees and incur overdraft charges. We assess whether minimum account balances to avoid fees, account maintenance fee amounts, and non-sufficient funds charges are systematically different in LMI and majority-minority communities, and find that they are generally higher. For example, the minimum account balance to avoid fees in a non-interest checking account is about $50 higher in LMI Census tracts than in higher income tracts, and $75 higher in majority-minority tracts. Differences in bank fees between LMI, majority-minority, and other communities result from various factors, including bank lending income, bank operating costs, and bank size.
Keywords: Bank fees? deposit accounts? LMI? majority-minority
DOI: https://doi.org/10.17016/FEDS.2022.040
PDF:
Full Paper
Last Update:
June 28, 2022
0https://www.federalreserve.gov/econres/feds/files/pap.pdf’>https://www.federalreserve.gov/econres/feds/files/pap.pdf
Fonte/Source: https://www.federalreserve.gov/econres/feds/cost-of-banking-for-lmi-and-minority-communities.htm