03 jan Payday-loan bans: proof of indirect impacts on supply

Payday-loan bans: proof of indirect impacts on supply

Styles in branch counts

Numbers 1, 2, 3, 4, and 5 display the styles in noticed running, opening, and branches that are closing payday loan providers, pawnbrokers, precious-metals dealers, small-loan loan providers, and second-mortgage lenders during the state-level by duration. corresponds to Period 1. The APR ban had been finalized by the state governor in Period 30, initially enacted in Period 33, last but not least effective in Period 35; these activities are suggested in each figure because of the solid lines that are vertical.

From Fig. 1, the sheer number of running lending that is payday grows from durations 1 to 36 with a little decline in Period 24. The sheer number of operating payday lenders stays high until Period 37. This can be two durations following the policy took impact and, most crucial, the time after which current payday lending licenses expired. The timing among these structural changes shows the effectiveness of this policy in determining practicing payday loan providers and reducing the range working payday lenders to zero.

Trend in branch information: payday lenders. This figure shows the trend in branch counts when it comes to amount of seen, new, and shutting lending that is payday starting (Period 1) through (Period 60) when it comes to state of Ohio. The APR limit had been finalized by the governor in June 2008, enacted on September 2008, and authorized by voters and enforceable; this corresponds to Periods 30, 33, and 35, correspondingly, and it is suggested because of the straight lines

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