MinorityBank Blog

Mid-Year 2022 Minority Bank and Thrift Review

The number of minority banks in the US held steady at between 168 and 174 in the second quarter of 2022.

Assets and number of minority banks in the US, second quarter, 2022,

Asian owned banks, concentrated in California, hold 51% of assets, with 77 institutions., Hispanic banks, concentrated in Florida and Texas, number 33 institutions and hold 42% of assets, followed by Women-owned banks (17 institutions with 3% of assets), Black Banks (19 institutions and 2% of assets), Native American Banks (20 institutions and 2% of assets) and Multi-ethnic Banks (2 institutions and 0.42% of assets)

Asian assets total $172 billion. Hispanic institutions hold $141 billion. Women-owned bank assets total $9.7 billion. Black bank assets are $7 billion. Native American institutions hold $7.6 billion and Multi-ethnic banks have $480 million in assets.

These factors point to a set of policies designed to assist the growth and utilization of these institutions. Our report describes and details these factors.

Mid-Year 2022 Minority Bank and Thrift Review ($450.00)


Summary 3
Geographic Concentration 5
Asian Banks 6
Hispanic Banks 7
Black Banks 8
Conclusion 9
Endnotes 10

For information, email info@minoritybank.com

Fixing Abortion And Black Maternal Mortality Is NOT Up To the Supreme Court. It’s Up to the Fed…

Black women die in childbirth at disproportionate rates compared to their white counterparts. Research conducted by the Centers for Disease Control and Prevention (CDC) clearly shows that social determinants – access to nutrition, transportation, and healthcare——are crucial factors.

See: https://www.impactinvesting.online/2022/06/fixing-abortion-and-black-maternal.html

Repeal the Community Reinvestment Act

BankThink. American Banker Newspaper, June 22, 2022

Repeal CRA

The Community Reinvestment Act was enacted in 1977 “to address inequities in access to credit for low- and moderate-income individuals and communities.” The law should be repealed and replaced. Like hanging a crystal chandelier in a lean-to shack, any efforts to revise the law are a waste of time. This especially includes efforts proposed by the Federal Reserve Board “to strengthen the achievement of the core purpose of the statute, and to adapt to changes in the banking industry, including the expanded role of mobile and online banking.” 



As reported in Black Enterprise Magazine, “While multiple reports have shown rising interest in financing Black-owned small businesses, a new study shows an underlying problem still remains. According to the “State of Minority Business, March 2022” report by Creative Investment Research, there has been less understanding of the core issues small Black-owned firms face in gaining funding to start or grow enterprises.”


Black communities need more help from the Fed

An estimated $7 billion in corporate pledges have been made to facilitate efforts that support racial justice, and help activities that seek immediate solutions to the crisis affecting Black people.

We are very familiar with these types of promises, having launched the first website focusing on financial support for minority communities in 1995 and a new website to monitor such corporate pledges.

Yet it appears that only $188 million of that $7 billion is money someone can reasonably expect to get their hands on. Further, in certain sections of the Black community, there is concern about the effectiveness of the traditional organizations identified as recipients of the pledges. And there appears to be less concern with newer, trending organizations.

In a recent survey of customers banking at black-owned banks, the results suggest most consumers who do not use Black banks are concerned about their financial stability, and have not been able to leverage financial resources from these institutions.

Programs that rely on secondary institutions to provide capital to already underutilized Black-owned banks add another stumbling block to the effort to get capital where it is needed.

Certainly, more money will help. But there may be more effective methods such as creating a digital wallet and currency to get money directly to affected communities without the need for money-sapping intermediaries; or creating a large credit program at the Federal Reserve. The latter approach holds the most promise.

Recall that the Federal Reserve Board created a secondary market corporate credit facility to purchase a more diversified portfolio of corporate bonds that include supporting large employers. Regrettably, very few Black-owned firms are eligible for this program, having been locked out of the corporate-debt market largely due to discrimination, both involuntary and self-imposed.

The Fed also created the Main Street Lending Program meant to encourage cash flows to small and midsize businesses by purchasing up to $600 billion in loans. But already, the number of black-owned small businesses plummeted by 41% between February and April when the coronavirus pandemic started in the U.S., according to a working paper published by the National Bureau of Economic Research.

The financial losses to the Black-owned businesses is estimated at $23 billion due to the pandemic. Therefore, the Fed should allocate $23 billion of the $600 billion in its Main Street program to Black-owned firms, using a wide array of financial instruments and techniques.

Lastly, Black people need a truly collaborative and cooperative effort — in and by the Black community — a community often trained to be cutthroat to each other given the paucity of resources at its disposal. After Creative Investment Research, in the public spirit, disseminated an estimate of corporate pledges to the Black Lives Matter cause (at $1.6 billion), several foundations made donations totaling $1.7 billion.

Now is the time to let go of bad habits for the survival of the Black community. In so doing, they can also show the world the way out of the crisis.

Published July 07, 2020, 10:23 a.m. EDT in the American Banker Newspaper. https://www.americanbanker.com/opinion/black-communities-need-more-help-from-fed