Abstract

Where Banks are Few, Payday Lenders Thrive
Track: Banking and Financial Services
Authors: Priscilla Hamilton

Our paper analyzes the correlation between the existence of banks and payday lenders in California, and explores whether banks and payday lenders strategically choose storefront locations based on demographic and economic characteristics. Given that the nation is now recovering from a severe recession, we also provide recommendations for policymakers and financial institutions to create greater access to loans at more affordable rates.