Banks, insurance companies, and discrimination

Block, Walter and Snow, Nicholas and Stringham, Edward (2008): Banks, insurance companies, and discrimination. Published in: Business and Society Review , Vol. 35, No. 7 (September 2008): pp. 403-419.

Abstract

This article examines some of the reasons why banks and insurance companies have been accused of discrimination, and shows that this is by and large a false accusation. Economic analysis demonstrates that racial discrimination is not a profit-maximizing strategy. Actually, unwise public policies are actually precluding many consumers from the market.

• Item Type: MPRA Paper
• Language: English
• Keywords: redlining; financial regulation; unintended consequences
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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