U.S. flag

An official website of the United States government, Department of Justice.

Do Fringe Banks Create Fringe Neighborhoods? Examining the Spatial Relationship Between Fringe Banking and Neighborhood Crime Rates

NCJ Number
249989
Date Published
November 2014
Length
31 pages
Author(s)
C. E. Kubrin, J. R. Hipp
Agencies
NIJ-Sponsored
Annotation
Given the spatial concentration of “fringe lenders” - such as check cashers, payday lenders, and pawnshops - in low-income neighborhoods with greater concentrations of racial and ethnic minorities and typically more crime, this study examined whether fringe lenders are themselves engaged in crimes.
Abstract
The study examined several types of fringe lenders on neighborhood crime rates in Los Angeles. The findings show that the presence of fringe banks on a block is related to higher crime levels, even after controlling for a range of known factors. (Publisher abstracts modified)
Date Created: April 24, 2017