Payday-loan bans: proof indirect results on supply

Payday-loan bans: proof indirect results 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 lenders, 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 ended up being finalized because of the state governor in Period 30, initially enacted in Period 33, last but not least effective in Period 35; these occasions are suggested in each figure because of the solid lines that are vertical.

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

Trend in branch data: payday lenders. This figure displays the trend in branch counts when it comes to amount of seen, new, and shutting payday financing branches starting (Period 1) through (Period 60) when it comes to state of Ohio. […]