Black Money Business Jobs : Black-Owned Banks Struggling to Stay Out of the Red

Discussion in 'Black Money Business Jobs' started by MsInterpret, Aug 29, 2011.

  1. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    Black-Owned Banks Struggle To Stay Out Of The Red


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    Trymaine Lee
    After more than a century of delivering financial resources to underserved communities, black-owned banks are struggling to remain relevant -- and solvent -- in an economic environment full of pitfalls.
    Their traditional customer base -- lower and middle class blacks, small business owners and churches -- has been disproportionately affected by high unemployment, leaving customers with less money to deposit and, in turn, leaving many of these smaller financial institutions with less capital to reinvest in their communities. As customers have fallen on hard times or fallen behind in their loan repayments or mortgages, home foreclosures have become a nagging issue, hamstringing banks' portfolios with toxic loans. Meanwhile, many customers with big savings and healthy checking accounts opt for the flexibility of larger banks, which offer more branches and a wider variety of services.
    "This minority bank community is really catching hell," said Michael Grant, the president of the National Banker's Association, an 84-year-old trade group that represents minority-owned banks. "They have survived everything, including world wars and Jim Crow, but this has been one of the most difficult periods of all."
    Black banks have functioned mainly as "mission-based" institutions, born not long after slavery to help build black wealth. (The first African-American-owned and -operated bank was Capital Savings Bank in Washington, D.C., established in 1888. It spurred a boom in black businesses and offered blacks a resource they had been previously denied.) They are traditionally conservative, with close ties to local churches, families and businesses. When the community suffers, it's felt more acutely, with little wiggle room for mistakes.
    "If the community is struggling financially, with unemployment rates as high as 20 to 25 percent in some places, what does that do to its overall financial health?" Grant asked. "If people don't have work or they are underemployed, if they are losing their jobs, it affects how much they can put into their bills or into their church, and the churches have the big loans and it affects their payments."

    READ MORE: http://www.huffingtonpost.com/2011/08/22/black-owned-banks-struggl_n_933216.html?ir=Business
     
  2. RAPTOR

    RAPTOR Well-Known Member MEMBER

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    A trillion dollars we're pumping into the economy yet black-owned banks and investment firms struggle. What's wrong with that picture??? In any event, how does that happen???
     
  3. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    But of course...Another way to keep black people struggling.
     
  4. RAPTOR

    RAPTOR Well-Known Member MEMBER

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    Well I'll say this:if we can't spark enough motivation/desire of a significant amount of 'us' to invest in these
    financial institutions, struggle will continue (at best).
     
  5. info-moetry

    info-moetry STAFF STAFF

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    peace

    I remember years ago we had a Carver bank open up in my old neighborhood and it only lasted there for about 6 - 8 months. The people simply refused to bank with them.. It was almost as if they didn't see this black owned bank as ligitimate or something.

    On the other hand, the advertising of the bank was by word of mouth only. They did little to no advertising except if you happened to pass by it and they would have someone outside the bank handing out pamphlets...
     
  6. RAPTOR

    RAPTOR Well-Known Member MEMBER

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    Man,

    You hit on something.

    What happened that we can trust 'us'?
     
  7. info-moetry

    info-moetry STAFF STAFF

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    peace

    'White' people.....

    We don't trust us because we have been conditioned to think that way. We don't think dead white presidents belong buried in a black bank. When we see that a black bank, or any other institution owned by 'us' we sub-conciously think of 'family' and that thought, imho, immediately triggers those old sayings in our minds:

    'you can never do business with family'
    'family will be the first one to stab you in the back'
    'if you lend money to family you will never get it back' (i think this one tops the list)

    So instead of trusting our money with 'family', we'd rather give it to our open enemy. Why? Because he gives us nothing in return.
     
  8. $$RICH$$

    $$RICH$$ Lyon King Admin. STAFF

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    This how we been programed to not trust in anything black or we'll be taken or beat
    As a black business owner i've seen all this first hand at it's best and that will kill any
    hope / many black banks are crashing / folding under because we turn our heads and
    head to the HARRIS / CITCORP/and other places to habor our Dollars.

    We really need to back these black businesses and show a strong support
    you have to give to recieve they can help you if you help them , if we bank
    with them then black families can get loans .
    they can't give what they don't have !
     
  9. Bootzey

    Bootzey Well-Known Member MEMBER

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    Since folks aren't using them as a resource, they have less to work with and they can't offer you the same services a big bank can offer. Also, frank ignorance in our communities that they even exist. There is no reason why we can't put small amounts or club accounts
     
  10. Chinelo

    Chinelo Third Eye Is Always Open MEMBER

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