Banks make more lending and open more branches near their CEO’s birthplace. This reflects favoritism rather than information advantages: the effect is stronger during economic downturns, among altruistic CEOs, in struggling counties, and among marginal mortgage applicants. Furthermore, while home favoritism does not affect the bank’s profitability, it leads to positive economic outcomes in counties exposed to greater favoritism. Together, our results suggest home favoritism as one channel that deepens credit inequality.