Bouncing out of the banking system: An empirical analysis of involuntary bank account closures

Campbell, Dennis; Martínez-Jerez, F. Asís; Tufano, Peter

doi:10.1016/j.jbankfin.2011.11.014

Cited by 91 publications

(28 citation statements)

References 33 publications

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“…(Conversely, Stoianovici, and Maloney, 2008, find no relationship between these loans and bankruptcy filings.) Campbell, Martinez-Jerez, and Tufano (2008) find fewer involuntary bank account closures due to overdrafts after Georgia banned payday lending. For military personnel, payday loans are associated with declines in overall job performance and lower levels of retention (Carrell and Zinman, 2008).…”

Section: Case Study: Payday Lendingmentioning

confidence: 95%

Consumer Financial Protection

Campbell

Jackson

Madrian

et al. 2011

Journal of Economic Perspectives

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The recent financial crisis has led many to question how well businesses deliver services and how well regulatory institutions address problems in consumer financial markets. This paper discusses consumer financial regulation, emphasizing the full range of arguments for regulation that derive from market failure and from limited consumer rationality in financial decision making. We present three case studies—of mortgage markets, payday lending, and financing retirement consumption—to illustrate the need for, and limits of, regulation. We argue that if regulation is to be beneficial, it must be tailored to specific problems and must be accompanied by research to measure the effectiveness of regulatory interventions.

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Section: Case Study: Payday Lendingmentioning

confidence: 95%

Consumer Financial Protection

Campbell

Jackson

Madrian

et al. 2011

Journal of Economic Perspectives

Self Cite

352

167

View full text Add to dashboard Cite

show abstract

“…Although consensus on whether payday loans help or harm consumers remains elusive, the empirical findings can be summarized into two categories: (1) welfare improving by smoothing income and expenditure shocks (e.g., Karlan & Zinman, 2010;Morgan & Strain, 2008;Morse, 2011;B. Wilson, Findlay, Meehan, Welford, & Schurter, 2010;Zinman, 2010) and (2) welfare deteriorating by exacerbating financial distress (e.g., D. Campbell, Martinez-Jerez, & Tufano, 2008;Carrell & Zinman, 2008;Han & Li, 2011;Melzer, 2011;Skiba & Tobacman, 2011). Table 1 contains descriptions of data, major variables and findings, and impacts on consumer welfare of each of the studies reviewed under this section.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…Through county-level data analysis, D. Campbell et al (2008) showed that the availability of payday lending was associated with increased rates of involuntary bank account closure. Payday loan applicants who were barely approved for their first loans were 2.48 percentage points more likely to file for Chapter 13 bankruptcy than their barely rejected counterparts, and the cumulative interest burden from payday and pawn loans amounted to roughly 11% of the total liquid debt interest burden at the time of bankruptcy filing (Skiba & Tobacman, 2011).…”

Section: Are Payday Loans Welfare Deteriorating?mentioning

confidence: 99%

Payday Loan Use and Consumer Well-Being: What Consumers and Social Workers Need to Know About Payday Loans

et al. 2014

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“…In the literature on this topic, Campbell et al (2008), Lusardi and Tufano (2009) and Scholnick (2009) focus on the role of payment innovations and services in consumer finance and consumer spending patterns. Hirtle and Stiroh (2007) document a "return to retail" for US commercial banks, with managers and analysts emphasising the relative stability of consumer-based business lines.…”

Section: Introductionmentioning

confidence: 99%

Returns to Retail Banking and Payments

2011

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The present paper examines the fundamental relationship between the country-level infrastructure of the retail payment market and overall bank performance. Using data from across 27 European markets over the period 2000-07, the results confirm that the performance of banks in countries with more developed retail payment service markets is better. This relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology itself can also improve bank performance, and evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance, although they have a positive influence on the performance of commercial banks as well. Additionally, the findings reveal that the impact of retail services on bank performance is more pronounced through fee income, although their impact through interest income is also positive. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications.

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Bouncing out of the banking system: An empirical analysis of involuntary bank account closures

Cited by 91 publications

References 33 publications

Consumer Financial Protection

Consumer Financial Protection

Payday Loan Use and Consumer Well-Being: What Consumers and Social Workers Need to Know About Payday Loans

Returns to Retail Banking and Payments

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