Assistant Professor of Finance
Texas Christian University
Interests: financial intermediation, household finance, corporate finance
Traweek, Virginia, and Malcolm Wardlaw. “Freedman’s Savings and Trust Bank Passbook and Dividend Repayment Records.” Journal of Slavery and Data Preservation 3, no. 1 (2022). https://doi.org/10.25971/7jn5-5×58.
“Societal Inequality and Financial Market Participation: Evidence from the Freedman’s Savings Bank“ (with Malcolm Wardlaw)
Revise and Resubmit, Review of Financial Studies
Using a unique set of linked records from the Freedman’s Savings Bank, we examine how depositors react to an evolving financial crisis, and how this behavior impacts policy makers’ goals of increased financial participation. We find that the target Black depositor responds similarly to White depositors in nationwide panics but more slowly in environments where bank-specific information is present, with White depositors twice as likely to close their accounts before the bank’s failure and disproportionate losses born by community organizations. Our results demonstrate how the structure of simple financial institutions can create systematic disadvantages for minority communities.
Revise and Resubmit, Journal of Banking & Finance
Using a detailed depositor arrival data from the Freedman’s Savings Bank, we examine how social unrest impacts policy makers’ goals of increased financial participation and economic integration for minorities. We find that events that imperil public safety also decrease participation in banks. Alternatively, events that increase social stability increase the arrival of new depositors at the bank. We show that these differences in participation occur along racial lines during violent events. Our results demonstrate how social conditions can alter participation in the banking system.
Bank branches in counties with a high rural population offer certificate of deposit (CD) rates of up to 22% higher than banks in counties that are more urban. Although bank size does explain some of this result, controlling for large bank results in a 5.6% to 8% rural CD premium. I show that higher CD rates in rural counties are not a function of credit quality of rural borrowers and are not explained by rural CD depositor impatience or rural bank capital constraints. Overall, my findings highlight an important difference in the way rural and urban depositors interact with the financial system.
“100 Years of Banking” (coauthored with Amiyatosh Purnanandam and Taylor Begley, draft coming soon)
Using a novel dataset consisting of over 100 years of bank branch location data, we summarize the growth of mainstream and shadow banking for three states in the Midwest United States. Our results show the relative size of the banking and shadow bank industries throughout the 1900s. First, we demonstrate a sharp divide between rural and urban counties in access to finance. Second, we show a persistent substitution across financial institutions. Our results demonstrate that shadow banking is not a new invention in American society.