Sean Marshall

This paper describes the fringe banking industry, which includes cheque cashing and payday lban services, and examines the spatial distribution of fringe banks in the Greater Toronto Area. It is found that there are significant differences between the locations of fringe banks in the GT A and with the findings of several case studies, particularly in the United States, where fringe banks are found mostly in economically disadvantaged, inner city neighbourhoods. There are several clusters in the GTA, both in the City of Toronto and its suburbs, where there are many of these businesses located close to each other.

While not one factor can explain the distribution of fringe banks in the GT A, it appears that they are mostly like to locate in areas nearby public transit corridors, areas with high low-level (manufacturing and service industry) employment, areas with higher proportions of low income households and where there are other similar businesses (such as thrift stores) located nearby.