Summary of recent news articles on black-owned banks 09/12/16-09/23/16

Boosting A Black Bank. By Karen Morales, Bay State Banner. September 21, 2016.

In less than a month, $10 million in deposits were added at OneUnited, and customer activity “continues to be at elevated levels,” said Teri Williams, President of OneUnited Bank. She said the movement is a way to create change by not only moving your money but also moving your mind or changing your mindset. Williams believes that the #BankBlack movement can be a public reminder that black-owned banks and businesses offer the same quality service as any other company.

Past & Present: The 'Black Money Matters' Movement. By Robert E. Weems Jr., KMUW 89.1 Wichita Public Radio. September 20, 2016.

While the Black Money Matters Movement is a favorable development in the context of African American business history, the past several decades have been disastrous for many historic black enterprises. As recently as the 1960s, there were more than 50 viable black insurers in the United States. Today, that number has dwindled to just two, and will be zero by the end of this decade based upon recent trends.

A Letter of Appreciation to All Who Decided to Open Accounts in Black Banks: This Might Prove to Be a Game-Changer. By Michael Grant, The AFRO. September 16, 2016.

The president of the National Bankers Association Michael Grant says opening accounts in Black banks is a great first step for African Americans to achieve financial independence. And next, the Black bankers have a responsibility to teach banking 101 to the masses. The more home equity loans are used to create new businesses or to expand existing ones, the more jobs (and job training) these businesses can provide. The bank’s increased lending capacity is how we begin growing the collective wealth of the community.

How #BankBlack Could Help Narrow the US Wealth Gap. By Eliza Lambert, The Takeaway, Public Radio International. September 15, 2016.

The #BankBlack hashtag revolution has grown black-owned banks’ assets by about $6 million. The President of OneUnited Bank Teri Williams says, “What it really has meant is that the black community is finally coming to recognize the power of our spending dollars.” Mehrsa Baradaran, the author of the book “The Color of Money: A History of Black Banking”, calls black-owned banks “the engines of wealth growth in the black community”, and the only ones trying to make a dent in the wealth gap.

Some Residents Support Black-owned Bank. By Alva James-Johnson, Ledger-Enquirer. September 13, 2016.

The local organizing committee of the Justice Or Else! Millions More March formed last year to promote the importance of supporting black businesses in the Columbus community. They put the next spotlight on the Columbus branch of Citizens Trust Bank, encouraging black residents to open accounts with the only black-owned bank in the city.

The Promise and Challenge of Moving Money Into Black-Owned Banks. By Gillian B. White, The Atlantic. September 12, 2016.

#Bankblack’s successes are certainly impressive, but making black-owned banks economically viable in the long term will require larger and more systemic change. Less than 50 years ago, legislation mandated that white banks serve black customers, exposing black-owned banks to far more powerful competitors. Since the Great Recession, smaller banks have objected to stricter compliance reporting and heightened capitalization standards. John Robinson said the revival of black-owned banks would require a massive change to the American banking system, which still favors the largest banking operations over community-based banks and credit unions.