Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302218 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. WP 2024-17
Publisher: 
Federal Reserve Bank of Chicago, Chicago, IL
Abstract: 
US Interstate bank deregulation during the 1980s and 1990s led to larger, nationally diversified banks, and a decline in the number of local community banks. Economic theory suggests that community banks may have a greater incentive, but a lower capacity, to lend to a region following a destructive event such as a natural disaster. We test whether there are differences in post-disaster credit allocation and regional redevelopment based on the concentration of local banking at the time of an economic shock. We find causal evidence of less credit allocated and somewhat weaker redevelopment in regions with more local banking.
Subjects: 
banking
deregulation
natural disasters
JEL: 
G21
O16
Q54
R11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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