*It may come as no surprise to you to know that Black banks fall short in number and assets compared to banks owned by Hispanics and Asians in the U.S.
According to the “Mid-Year 2022 Minority Bank And Thrift Review” by Creative Investment Research, the breakdown of minority banks in the US in the second quarter of 2022 is as follows: “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.”
Per Black Enterprise, “The analysis reveals Black banks hold just roughly 2% of the $338 billion-plus for all ethnic banks examined. In contrast, Asian banks hold around 51% and Hispanic banks have about 42% of those assets,” the outlet writes.
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“Black banks will never be meaningful at this level,” says William Michael Cunningham, an economist and owner of Creative Investment Research in Washington, D.C, per the report. “They will always have limited impact.”
Cunningham says the solution to help Black-owned banks get ahead in the game is by increasing assets.
“You need at least 50 new Black banks with $1 billion in assets each,” he added.
“Nothing will change for Black banks without the same kind of extra capital effort that the Fed made to prop up white banks after the 2008 financial crisis and the 2020 pandemic,” Cunningham said.
Per Black Enterpirse “Cunningham offered a $50 billion solution to the Black banking crisis in an opinion piece.”
