- Advertisement -
Home Current Events The First Black-Led Bank With Over $1 Billion In Assets Just Formed

The First Black-Led Bank With Over $1 Billion In Assets Just Formed

- Advertisement -

Black banks are generally local but Los Angeles-based Broadway Federal Bank and Washington, D.C.-based City First Bank just combined to cover both coasts. The two institutions, by merging, also just created the first Black-led bank with over $1 billion in assets. The new entity formed will have roughly $850 million in deposits.

Black owned (and led) banks have declined sharply in recent years. The most recent data available from the Federal Deposit Insurance Corporation showed 48 Black owned banks in 2001 but just 20 remain today. The consolidation of Broadway Federal Bank and City First Bank is a move that will create a stronger institution and one that will be centered on community uplift. The newly minted entity will operate as a Community Development Financial Institution (CDFI), which means it must target at least 60% of its lending into low- to moderate-income communities. When banks lend locally, local communities win and with a CDFI structure, this bank will have a focus on that mission.

Focused lending in low- to moderate-income communities is essential for Black people, who disproportionately make up the population is such communities. However, with the onslaught of gentrification in American cities, lending in “low- to moderate-income” neighborhoods doesn’t necessarily mean lending to Black people. Indeed, lending to gentrifiers can actually help banking institutions fulfill their low- to moderate-income lending requirements. Targeting Black people within those communities requires much more intentionality, which Black banks have historically been very skilled at.

- Advertisement -
D'Juan Hopewell
I care about Black Power. Period. Currently working on creating jobs and funding new startups on the South Side of Chicago and writing here and there at HopewellThought.com. Follow me @HopewellThought.
- Advertisement -

Stay Connected

348,245FansLike
0FollowersFollow
220,589FollowersFollow
0FollowersFollow
6SubscribersSubscribe

Must Read

Take Control of Your Feminine Health with Goddess Body

Goddess Body helps women achieve overall wellness through supplements, detoxes, feminine hygiene, and health consultations
- Advertisement -

Your Furry Loved Ones Deserve the Best: Zach’s Quality Dog Food

Zach’s Quality Dog Food is a company providing high-quality and affordable dog food made with simple ingredients.

Dreaming of Financial Independence? The Common Cents Couple Can Help!

We all know how important credit is to get a house, car, or a loan – but did you know good credit could also...

You’ll Want to Attend This Retail Webinar by Banana Wave Co-Founder

The Retail Business Activator webinar by High Ticket Freedom is a crash course on how to take your ideas and goods and turn them into actual products that can be sold in the market.

Related News

Take Control of Your Feminine Health with Goddess Body

Goddess Body helps women achieve overall wellness through supplements, detoxes, feminine hygiene, and health consultations

Your Furry Loved Ones Deserve the Best: Zach’s Quality Dog Food

Zach’s Quality Dog Food is a company providing high-quality and affordable dog food made with simple ingredients.

Dreaming of Financial Independence? The Common Cents Couple Can Help!

We all know how important credit is to get a house, car, or a loan – but did you know good credit could also...

You’ll Want to Attend This Retail Webinar by Banana Wave Co-Founder

The Retail Business Activator webinar by High Ticket Freedom is a crash course on how to take your ideas and goods and turn them into actual products that can be sold in the market.

These 5 Organic Sauces From Shaleafa’s Kitchen Will Elevate Any Meal

Flavorful, sustainable, healthy, and Black-owned – what’s more to love about Shaleafa’s Kitchen, a farm-to-table, zero-waste concept restaurant located in Washington, D.C.? The brand’s...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here