STRATEGIC RESPONSES TO BANK REGULATION - EVIDENCE FROM HMDA DATA

Authors
EVANOFF DD SEGAL LM
Citation
Dd. Evanoff et Lm. Segal, STRATEGIC RESPONSES TO BANK REGULATION - EVIDENCE FROM HMDA DATA, Journal of financial services research, 11(1-2), 1997, pp. 69-93
Citations number
32
Categorie Soggetti
Business Finance
Journal title
Journal of financial services research → ACNP
ISSN journal
09208550
Volume
11
Issue
1-2
Year of publication
1997
Pages
69 - 93
Database
ISI
SICI code
0920-8550(1997)11:1-2<69:SRTBR->2.0.ZU;2-#
Abstract
The intent of fair lending regulation is to encourage loans in low-inc ome areas and ensure that loan decisions are based on economic criteri a instead of noneconomic borrower characteristics. We evaluate situati ons in which banks may find it in their self interest to respond to re gulation in a strategic manner intended to improve public relations an d appease regulators rather than to adhere to the true spirit of the r egulation. We find some evidence consistent with such behavior.