Neighborhoods, Banks, and Capital Flows: The Transformation of the U.S. Financial System and the Community Reinvestment Movement

Abstract

Substantial changes in the structure and operation of the U.S. financial system during the last quarter century have reduced the flows of credit and banking services to low-income and minority communities. This article explains how the operation of basic technological, economic, and political forces has transformed the financial institutions of U.S. capitalism; examines the consequences of this transformation for the residents of low-income and minority communities; and explores how the grassroots-based community reinvestment movement has effectively adapted its strategy and objectives to "the ongoing revolution In American banking."