Reducing Racial Disparities in Consumer Credit: Evidence from Anonymous Loan Applications
Using a unique experiment of anonymizing online loan applications, the authors find that anonymous loan applications reduce racial disparities in access to credit. With names on applications, ethnic minority applicants are 10.6% less likely to receive online loan offers than otherwise identical ethnic majority applicants; anonymizing applications eliminates such disparities. Anonymization merely delays revealing race until applicants visit the lender in person for the required identity verification before loan origination. Yet, racial disparities in loan origination also decrease. The authors do not find significant racial gaps in loan performance before or after anonymization. Furthermore, accurate statistical discrimination is unlikely to explain their results.
Session Chair: Bernard YEUNG
Stephen Riady Distinguished Professor in Finance and Strategic Management, National University of Singapore and President, ABFER
Assistant Professor in Finance, NUS Business School, National University of Singapore
Tianyue Ruan joined the Department of Finance at the National University of Singapore (NUS) Business School in 2018 as an Assistant Professor. Her main research interests are financial intermediation, household finance, and the Chinese economy. Her research has been published in the Proceedings of the National Academy of Sciences and funded by the Singapore Ministry of Education’s Social Science Research Thematic Grant. She received her Ph.D. in Finance from New York University Stern School of Business in the USA. As an undergraduate, she studied economics and finance at Peking University in China.
Professor, Decision Sciences, Indian Institute of Management, Bangalore and Fellow of ABFER
Pulak GHOSH is Professor in the Decision Sciences Area at IIMB. His key specializations are in intersection of Big data, Machine learning, Artificial Intelligence and its use in Economics, Finance, Policy and Social Value Creation. He did serve in the editorial board of Journal of the American statistical Association, Journal of the Royal statistical Society and currently serves in the editorial board of Biometrics.
Based on his outstanding and innovative contribution to research, the International Indian Statistical Association awarded him with the "Young Scientist Award” in 2011. The Government of India awarded him the prestigious CR Rao award in 2015 and Econometric Society awarded him the Mahalanobis Award in 2016.
Prior to joining IIMB, he served as Associate Director, Novartis Pharmaceuticals, USA, Assistant Professor, Georgia State University, and Associate Professor at Emory University, USA. He is a visiting faculty at several institutes of international repute.
Stephen Riady Distinguished Professor in Finance and Strategic Management, NUS Business School, National University of Singapore and President of ABFER
Bernard Yeung is Stephen Riady Distinguished Professor in Finance and Strategic Management at the National University of Singapore Business School. He is also the President of the Asian Bureau of Finance and Economic Research. He was Dean of NUS Business School from June 2008 to May 2019. Before joining NUS, he was the Abraham Krasnoff Professor in Global Business, Economics, and Management at New York University (NYU) Stern School of Business. He has also served as the Director of the NYU China House, the honorary co-chair of the Strategy Department of the Peking University Guanghua School of Management. From 1988 to 1999, he taught at the University of Michigan and at the University of Alberta from 1983 to 1988.
Professor Yeung has published widely in academic journals covering topics in Finance, Economics, and Strategy; his writing also appears in top-tier media publications such as The Financial Times, Economist, and The Wall Street Journal.
He won the Public Administration Silver Medal (2018) in Singapore, Irwin Outstanding Educator Award (2013) from the Academy of Management and is an elected Fellow of the Academy of International Business.
Professor Yeung was a member of the Economic Strategies Committee in Singapore (2009), a member of the Social Science Research Council (SSRC) in Singapore (2016-2018) and a member of the Financial Research Council of the Monetary Authority of Singapore (2010 -2013).
Professor Yeung sits on the 3rd Advisory Board of the Antai College of Economics and Management at Shanghai Jiao Tong University, the Advisory Council of the Economics and Management School of Wuhan University and the Advisory Committee of the Institute of Economics, Academia Sinica. Professor Yeung also serves as an independent Non-Executive Director of the Bank of China (BOC) Aviation Limited since 2016.
Professor Yeung received his Bachelor of Arts in Economics and Mathematics from the University of Western Ontario and his MBA and PhD degrees from the Graduate School of Business at the University of Chicago.
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