COVID-19 and Its Impact on Minority-Owned Banks

Authors

Salvador Contreras, The University of Texas Rio Grande ValleyFollow
Amit Ghosh, Texas A&M International University

Document Type

Conference Proceeding

Publication Date

5-2022

Abstract

Employing a difference-in-differences framework, we examine the effect of COVID-19 on various performance metrics of minority-owned banks relative to peer banks. We find little evidence of worsening performance of minority-owned banks, except for Asian-owned banks. In some instances, minority banks show improved performance. We find a decline in nonperforming single-family residential loans for Hispanic-owned banks. Moreover, minority banks have disbursed more Paycheck Protection Program (PPP) loans than their matched non-minority counterparts. Their resilient performance indicates that minority banks are well positioned to aid in the ongoing economic recovery.

Comments

Copyright American Economic Association; reproduced with permission

Recommended Citation

Contreras, S. and Ghosh, A., 2022. COVID-19 and Its Impact on Minority-Owned Banks. In AEA Papers and Proceedings (Vol. 112, pp. 313-318). American Economic Association. htpp://doi.org/10.1257/pandp.20221114

Publication Title

AEA Papers and Proceedings

DOI

10.1257/pandp.20221114