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The Truth About Black Owned Banks (Minority Depository Institutions)

unnamed (8)Minority Depository Institutions (MDI’s) service some of the most challenging markets in the nation. Often in urban communities that may not otherwise have access to traditional mainstream banking institutions.
These 21 banks minorities own have total assets of approximately $4.7 billion dollars. This is a nearly invisible 0.43 percent of the $1.1 trillion dollars of annual spending power of the African-American community. It is no secret as a people we spend way more than we save or deposit back into our own institutions. Just to put that point into perspective, the worlds largest banks combined have jaw-dropping assets of about $25.5 trillion, most of which are outside of the U.S. The largest, Industrial & Commercial Bank of China (ICBC) has Assets of about 2.95 trillion, we spend a little less than half of what they own as a whole in one year. HSBC Holdings comes in a strong second with 2.68 trillion. J.P. Morgan, Bank of America, Citigroup, Wells Fargo though on the lower end of the worlds largest still boast assets in the trillions.
 Not one African-American Bank is on that list. The number of black-owned banks also lags behind the number of financial institutions owned by Asian-Americans, who made up 5.1% of the total U.S. population of over 300 million people in 2012. Asian-Americans own 40 banks nationwide, according to the Federal Reserve.

Hispanics or Latinos, who represent 16.9 percent of the general U.S. population, control 15 banks, according to the government. The statistics given to Black Westchester by Brother Joseph Muhammed on People Before Politics on what our dollar is actually spent towards caused the entire room to gasp. The jackpot question of the day is, how can we have over a trillion dollars in spending annually, but only keep $4.7 billion dollars of this in our own MDI’s?I’m still trying to figure it out and I’m sure you are also!

In 1994, we went from 54 African-American owned banks to less than 20 years later, only 21 remain. Analyst report the mortgage crisis hugely contributed to the demise of many of these institutions. Between 2001 and 2013, the failure rate for MDIs was nearly three times higher than it was for the entire industry. Despite our strong spending power, our financial institutions have been declining exponentially.

This is a list of the largest banks in the United States by total assets as of December 31, 2013.

Rank Bank name Location Total assets
(US$ Trillion)
1 JPMorgan Chase New York City, NY $2.6
2 Bank of America CharlotteNorth Carolina $2.10
3 Citigroup New York City, NY $1.89
4 Wells Fargo San FranciscoCalifornia $1.69
5 The Bank of New York Mellon New York City, NY $0.374
6 U.S. Bancorp MinneapolisMinnesota $0.364
7 HSBC Bank USA New York City, NY $0.321
8 PNC Financial Services PittsburghPennsylvania $0.302
9 Capital One McLean, Virginia $0.297
10 State Street Corporation BostonMassachusetts $0.243
11 TD Bank, N.A. Portland, Maine $0.204
12 BB&T Winston-Salem, North Carolina $0.183
13 SunTrust Banks Atlanta, Georgia $0.175
14 American Express New York City, NY $0.153
15 Ally Financial DetroitMichigan $0.151
There are many issues that plague the minority community and the institutions that serve us.
black banksFinancial education being close to the top of that list. Living check to check and historical lack of wealth amongst african Americans has been a huge factor as well, while some argue the lack of African-Americans supporting minority owned business and the disaggregated nature of the industry is to blame. Others say the root of it starts at home, we simply do not teach our families to reinvest in our communities. There’s an unspoken fear of not being able to afford to save, which is simply untrue. Financial responsibility isn’t taught early on in school even though it is the first thing you must manage once school is over. Although the internet gives us access to a plethora of information, most minority communities are not even aware of the resources available to them from these institutions, let alone know that they exist.
In order to chip away at systematic poverty and socioeconomic issues we must begin strengthen and reinvest in our financial institutions. Another crucial component is putting the correct people in control of these institutions that are capable of growing these corporations. Wether we realize it or not with 40 million African-Americans in the United States our dollar shifts the economy. If we take the time to reeducate our people, and reinvest into our MDI’s the more they can invest into us.
Below is a list of all the MDI’s as well as their locations:

bank alaALAMERICA BANK

Location: Birmingham, Alabama

Founded: January 28, 2000

FDIC Region: Atlanta

Assets: $35 404 000

broadwayBROADWAY FEDERAL BANK FSB

Location: Los Angeles, California

Founded: February 26, 1947

FDIC Region: San Francisco

Assets: $385 055 000

Capitol-city-bamk-west-end5CAPITAL CITY BANK & TRUST COMPANY

Location: Atlanta, Georgia

Founded: October 3, 1994

FDIC Region: Atlanta

Assets: $294 572 000

bank - carverCARVER STATE BANK

Location: Savannah, Georgia

Founded: January 1, 1927

FDIC Region: Atlanta

Assets: $41 573 000

bank - citizensCITIZENS TRUST BANK

Location: Atlanta, Georgia

Founded: June 18, 1921

FDIC Region: Atlanta

Assets: $392 286 000

bank - city nationalCITY NB OF NEW JERSEY

Location: Newark, New Jersey

Founded: June 11, 1973

FDIC Region: New York

Assets: $340 301 000

commonwealthCOMMONWEALTH NATIONAL BANK

Location: Mobile, Alabama

Founded: February 19, 1976

FDIC Region: Atlanta

Assets: $63 244 000

covenant-bank-msCOVENANT BANK

Location: Chicago, Illinois

Founded: June 20, 1977

FDIC Region: Chicago

Assets: $59 842 000

First_Indp_Bank_4C_Shadow_PNGFIRST INDEPENDENCE BANK

Location: Detroit, Michigan

Founded: May 14, 1970

FDIC Region: Chicago

Assets: $215 924 000

FIRST STATE BANK

Location: Danville, Virginia

Founded: September 08, 1919

FDIC Region: Atlanta

Assets: $38 882 000

tuskegee-bank02FIRST TUSKEGEE BANK

Location:Tuskegee, Alabama

Founded: October 11, 1991

FDIC Region: Atlanta

Assets: $63 127 000

bank - highland

HIGHLAND COMMUNITY BANK

Location: Chicago, Illinois

Founded: November 09, 1970

FDIC Region: Chicago

Assets: $84 948 000

illinoisservice-federal-savings-and-loan-associationILLINOIS SERVICE FEDERAL SAVINGS & LOAN

Location: Chicago, Illinois

Founded: January 01, 1934

FDIC Region: Chicago

Assets: $140 148 000

 

lsINDUSTRIAL BANK

Location: Washington, DC

Founded: August 18, 1934

FDIC Region: New York

Assets: $342 524 000

liberty bankLIBERTY BANK & TRUST COMPANY

Location: New Orleans, Louisiana

Founded: November 16, 1972

FDIC Region: Dallas

Assets: $545 019 000

mechanics bankMECHANICS & FARMERS BANK

Location: Durham, North Carolina

Founded: March 01, 1908

FDIC Region: Atlanta

Assets: $304 809 000

nmsbank-img2NORTH MILWAUKEE STATE BANK

Location: Milwaukee, Wisconsin

Founded: February 12, 1971

FDIC Region: Chicago

Assets: $91 490 000

bank - one unitedONEUNITED BANK

Location: Boston, Massachusetts

Founded: August 02, 1982

FDIC Region: New York

Assets: $590 624 000

seaway trustSEAWAY BANK & TRUST COMPANY

Location: Chicago, Illinois

Founded: January 02, 1965

FDIC Region: Chicago

Assets: $573 168 000

united-bank-of-philadelphiaUNITED BANK OF PHILADELPHIA

Location: Philadelphia, Pennsylvania

Founded: March 23, 1992

FDIC Region: New York

Assets: $67 930 000

unityUNITY NB OF HOUSTON

Location: Houston, Texas

Founded: August 01, 1985

FDIC Region: Dallas

Assets: $68 125 000

Source: FDIC

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About Priscilla Echi (46 Articles)
Priscilla Echi provides communication support for UrbanSoul Media Group (Black Westchester Magazine & People Before Politics Radio Show). She has worked in the High End Costumer Service Management and Non Profit arena for over 15 years. She has also been around music & fashion for over 20 years. This experience has given her distinctive vision and deep appreciation for how communication through media and non-profit work when managed well, can improve the quality of life in our region, one program at a time.
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1 Comment on The Truth About Black Owned Banks (Minority Depository Institutions)

  1. Latonya Moore // July 11, 2016 at 7:17 AM //

    Thank you for composing this article. I’ve been looking to invest my money in black owned banks. There are several that are 2hrs away and 1 that is about 40min.

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