NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Bank-branch boom skirts inner city

August 17, 2009
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Itâ??s no secret banks are tossing up branches left and right. IBJ reported last month that banks consider branches as billboards to lure new customers, even while bank transactions move online.

A new Associated Press analysis shows the boom is nationwide. In the past five years, banks have added 10,000 branches to bring the total to 99,000.

Moreover, the flurry of construction has targeted predominantly white, affluent suburbs rather than inner cities. Banks followed the rooftops as the boom in home construction pushed sprawl ever outward.

As a result, residents of inner cities have been forced to rely on non-bank institutions to cash checks and pay utility bills. Sometimes they also resort to payday lenders.

Banks  for the most part didnâ??t violate Community Reinvestment Act standards, the analysis showed.

How do you feel about the rush to the suburbs? Should the institutions be faulted for not putting more resources into inner cities?
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