Banking Below 30

[TwiceHorn 31280]

A piece by WFAAs David Schecter about Dallas banking and the southern sector.

I'm sure there's some oversimplification involved, but it's a pretty damning piece about Dallas powers that be continuing to ignore Dallas below I-30.

Edited December 2, 2020 by TwiceHorn

[Dahobbs 17447]

19 minutes ago, TwiceHorn said:

A piece by WFAAs David Schecter about Dallas banking and the southern sector.

I'm sure there's some oversimplification involved, but it's a pretty damning piece about Dallas powers that be continuing to ignore Dallas below I-30.

This is interesting, but I'm left with questions.

(1) Only 20% of the banks 105 surveyed excluded southern Dallas, so why isn't the remaining 80% good enough for the area? What other factors prevent loans from being made to the individuals and businesses there?  

(2) Wouldn't this exclusion just create economic incentive for some other bank to come in and serve the area? Are loans to the area just not profitable? If that is the case, then the solution seems like it has to be more than just making banks the serve the area.  

[formermav43 4599]

I clicked on this because I misread it as baking and got excited to see some cold weather holiday treats. Very disappointing.

[Nice Guy Eddie 13414]

36 minutes ago, Dahobbs said:

This is interesting, but I'm left with questions.

(1) Only 20% of the banks 105 surveyed excluded southern Dallas, so why isn't the remaining 80% good enough for the area? What other factors prevent loans from being made to the individuals and businesses there?  

(2) Wouldn't this exclusion just create economic incentive for some other bank to come in and serve the area? Are loans to the area just not profitable? If that is the case, then the solution seems like it has to be more than just making banks the serve the area.  

The video makes a solid argument that some banks appear to be purposefully avoiding southern Dallas. But I don't see an argument that this by itself is financially hurting southern Dallas.  I don't think that a nearby bank automatically improves the financial situation for the neighborhood.

Real estate redlining was a despicable practice and most likely still impacts some communities. But that doesn't make all banking activities racist. I think most all banks follow the profits.

[TwiceHorn 31280]

There's almost no question that the majority of borrowers and projects below 30 are less creditworthy than those above 30.

But there are and always have been some real stinkers north of 30.

The question becomes, why don't the banks ever go out on a limb south of 30 when they regularly do north of 30.

[workswithseed 2036]

7 minutes ago, TwiceHorn said:

There's almost no question that the majority of borrowers and projects below 30 are less creditworthy than those above 30.

But there are and always have been some real stinkers north of 30.

The question becomes, why don't the banks ever go out on a limb south of 30 when they regularly do north of 30.

"The North Dallas Beautiful People" live in the the north, and all the poors live on the south side.