Reinvestment Alert 19: Community Development Banks Substantially Outscore Other Banks in Serving Low-Income and Minority Communities

Malcolm Bush and Geoff Smith

Shows that community development (CD) banks far outperform regular banks in serving low-income and minority communities. Includes extensive data analysis which describes the performance of banks in Chicago. Demonstrates that a considerably higher percent of CD banks' home loans go to lower-income neighborhoods and borrowers than is true for all other lenders. The same pattern is repeated for loans to minority neighborhoods and borrowers.