Americans who identify solely as Black or African American make up 13.4% of the U.S. population today, but less than 1% of all FDIC-insured banks are considered Black-owned.
Big banks and corporations like Yelp, Netflix, and Microsoft have announced major investments in Black-owned banks.
Yet Black banks are far from thriving. Americans who identify solely as Black or African American make up 13.4% of the U.S. population today, but less than 1% of all FDIC-insured banks are considered Black-owned.
The number of Black-owned banks has dwindled immensely over the years. Between 1888 and 1934, there were 134 Black-owned banks to help the Black community. Today, there are only 20 Black-owned banks that qualify as Minority Depository Institutions, according to the Federal Deposit Insurance Corporation.
“I think part of it has to do with the broader trend in the banking community,” said Michael Neal, senior research associate at the Urban Institute. “We’re seeing the number of banks overall declining and assets being concentrated, particularly in your larger global and more complex financial institutions.”
