COVID-19 and Its Impact on Minority-Owned Banks
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.
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. 10.1257/pandp.20221114
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