Banking Options and Neighborhood Crime: Does Fringe Banking Increase Neighborhood Crime?

Abstract

In the past few years, scholars interested in neighborhoods and crime have turned their attention to the role of neighborhood organizations. Recently, (Kubrin, Squires, Graves, and Ousey, Criminology & Public Policy, 10(2), 437–466, 2011) examined the impact of payday lenders on neighborhood crime. They found that there is a significant relationship between payday lenders, and both violent and property crime rates. The current research builds upon their work by exploring banking options in the city of Norfolk, Virginia. Findings indicate that the presence of payday lenders is significantly related to property crime in 2010 and violent crime in 2010, though the findings for violent crimes are not robust. Also there is a mild suppression effect predicting violent crime rates once socioeconomic deprivation is controlled. Pawn shops are not significantly related to either property or violent crimes. Interestingly banks are significant positive predictors of both property and violent crimes. The difference between the findings here and those of (Kubrin, Squires, Graves, and Ousey, Criminology & Public Policy, 10(2), 437–466, 2011) are discussed.