Half Banked: The Real Effects of Financial Exclusion on Firms
Event details
| Date | 13.12.2019 |
| Hour | 10:30 › 12:00 |
| Speaker | Elizabeth Anne BERGER, Cornell University |
| Location | |
| Category | Conferences - Seminars |
This paper measures the economic effects of the warehouse function of bank access on firms. Although the economics of access to the credit side of banking is well understood, we know considerably less about how banking creates firm value by storing wealth and providing payment services. This is due to the fact that almost all firms have access to the warehouse function of banks. To address this empirical challenge, we focus on firms in the marijuana industry that face hurdles to obtaining financial services. Our results show that warehouse banking improves the business strategies of firms. Because banking services allow firms to make different business decisions, these firms are more profitable.
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