Niche and Mainstream Banking: A Comparative Study of Principal Characteristics throughout the Great Recession

This book explores the concepts of niche banking, and in particular, federally insured minority banks. The author compares the financial characteristics of small niche banks to those of mainstream banks. The dataset used in this research is derived from Uniform Bank Performance Reports (UBPR) that are publicly available through the Federal Financial Institutions Examinations Council (FFIEC). In particular, the result of this research supports the hypothesis that small minority banks are more sensitive to macroeconomic conditions as compared to same-size mainstream banks. Moreover, in a changing economic environment, changes in certain financial characteristics of small niche banks precede those of regular small banks. These results imply significant potential benefits to macroeconomists as a factor that can be considered in early identification of upcoming financial crises.