California’s Financial Landscape
California makes up about about 7 per cent of all bank branches and somewhat significantly more than ten percent of all of the payday stores nationwide. An infinitely more interesting photo emerges at the county degree. Their state has just one county without any banking institutions, but 14 counties without any payday financing shops. In the other end associated with the range, Los Angeles County has probably the most banking institutions and payday loan providers, with 2,120 and 521, correspondingly. The problem is very various on a per capita basis: in most county but one, the quantity of banking institutions per capita is more than how many payday loan provider shops per capita.
We gathered demographic and individual finance information by county to observe how they correlate utilizing the location choices of banking institutions and payday loan providers. The thing that is first note is the strong negative relationship between your wide range of bank branches plus the amount of payday lender shops, modified for populace.
It is possible this is merely the result of market forces – that banking institutions and lenders that are payday where their particular clients reside. Or it might signify banking institutions are reluctant to take the challenge on of expanding into brand brand new demographic sections, regardless of the possibility for profit. In any event, however, it sets residents of counties with reasonably banks that are few a drawback in borrowing. This can be particularly troubling since it is prone to reduce social and financial flexibility: less-banked counties are home to fairly more bad and minority households, as the populations of more-banked counties have both more training and greater incomes. Continue reading