Bouncing out of the banking system: An empirical analysis of involuntary bank account closures

► Over 30 million debit accounts were involuntarily closed during 2001-2005. ► Rates of closure are strongly related to economic conditions and family structure. ► Closures are more frequent in US counties with low levels of social capital. ► Rates of closure are strongly related to the structure of local banking markets. ► Access to payday lending leads to higher rates of involuntary account closure.