socialcapital _ nontech. pdf. cook, l. ( 2014 ). violence and economic activity : evidence from african american patents, 1870 to 1940, 19 j. of econ growth 221 - 257. evans, c. & pence, k. ( 2021 ). “ how can regulation facilitate inclusion in fintech? ” federal reserve bank of san francisco community development innovation review. https : / / www. frbsf. org / community - development / publications / communitydevelopment - investment - review / 2021 / august / how - can - regulation - facilitatefinancial - inclusion - in - fintech /. frame, w. s., huang, r., mayer, e. j. & sunderam, a. ( 2022 ). “ the impact of minority representation at mortgage lenders. ” national bureau of economic research working paper 30125. https : / / www. nber. org / papers / w30125. friesenhahn, s. & kwan, s. ( 2021 ). “ minority banks during the covid - 19 pandemic. ” federal reserve bank of san francisco frbsf economic letter 2021 - 20. https : / / www. frbsf. org / economic - research / wp - content / uploads / sites / 4 / el202120. pdf. howell, s. t., kuchler, t., snitkof, d., stroebel, j. & wong, j. ( 2022 ) “ lender automation and racial disparities in credit access. ” national bureau of economic research working paper 29364. https : / / doi. org / 10. 3386 / w29364 lanning, j. a. ( 2021 ). “ testing models of economic discrimination using the - 17 - discretionary markup of indirect auto loans. ” presented at the racial inequality and disparities in financial markets conference, federal reserve bank of atlanta. https : / / www. atlantafed. org / / media / documents / news / conferences / 2021 / 10 / 14 / racial - inequality - and - disparitiesin - financial - markets / lanning. pdf. morse, a. & pence, k. ( 2020 ). “ technological innovation and discrimination in housing finance. ” finance and economics discussion series 2020 - 018. board of governors of the federal reserve system

pdf. for state - level data, see the fdic custom data table tool. households nationally had a credit card, compared to 78. 1 percent of white households. 14 credit card ownership rates were even lower in mississippi at 28. 4 percent for black households, compared to 64. 5 percent for white households. 15 a credit card not only provides a buffer for unexpected expenses, it also allows individuals to accrue a credit history — central to accessing credit in the future. addressing these issues now let me turn to some ways to make progress. i ’ ll set out three areas in which financial institutions and regulators should do their part to address these issues, although the issues are complex and multifaceted, and there are no easy solutions. first : eradicate discrimination in lending and other financial services, and protect consumers from other unfair, abusive, or illegal practices. it is incumbent on financial institutions to devote resources to stamp out these practices, and on regulators to reinforce the importance of this goal through supervision and enforcement. second : look for opportunities to support a vibrant and thriving economy for the benefit of everyone. this means seeking out opportunities to invest in low - and moderate - income ( lmi ) communities, small businesses, and community infrastructure. third : develop products and services that can help people save and build wealth. eradicating discrimination i ’ ll start with our collective responsibility for eradicating discrimination in underwriting, lending, and other aspects of financial services. for most of our country ’ s history, the united states government and many state and local governments, as well as fdic national survey of unbanked and underbanked households. federal deposit insurance corporation ( fdic ). https : / / www. fdic. gov / analysis / household - survey / 2021report. pdf. for state - level data, see the fdic custom data table tool. many private individuals, corporations, and organizations, did not merely fail to protect minorities from discrimination ; they actively reinforced segregation, entrenched inequality, and enforced unequal policies — including through brutal violence. 16 17 the civil rights movement brought about changes in public opinion and in law. discrimination in housing and lending became illegal in 1968 and 1974, respectively, through passage of the fair housing act, and the equal credit opportunity act. congress passed laws, such as the community reinvestment act in 1977, to remediate redlining. but history casts a long shadow. how can we — both banks and