Supporting Black-Owned Banks Can Help Empower Communities

Black-owned banks provide essential services to underserved neighborhoods, but their numbers have declined over the years

Apr. 13, 2026 at 4:49am

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An extreme close-up of heavy, metallic banking equipment like vault doors and cash counters, dramatically lit against a dark, industrial background, conceptually representing the institutional power and infrastructure of the banking system.The tangible, industrial machinery that powers the banking system is a stark contrast to the racial inequities that have historically limited access to these essential financial services in many communities.Chicago Today

Black Americans have historically faced discriminatory banking practices and systemic racism, leading to higher rates of being unbanked or underbanked. Black-owned banks have provided mortgages, loans, and accounts to people of color when other banks would not, but their numbers have declined by over 50% since 2001. Supporting these mission-focused community banks can help economically empower Black communities.

Why it matters

Where you bank can promote racial equity and inclusion. Black-owned banks account for less than 1% of all mortgage lending to Black borrowers, despite their focus on serving these communities. Strengthening Black-owned banks is crucial to addressing the racial wealth gap and providing essential financial services to underserved areas.

The details

There are currently only 20 federally chartered Black-owned banks, down from 48 in 2001. The largest, City First Bank, has $1.169 billion in assets, while the four largest banks in the U.S. each have over $1.6 trillion. Black-owned banks face significant disadvantages in competing with larger institutions. Over 300 credit unions are at least partially Black-owned, though many have less than $1 million in total assets.

  • In 2001, there were 48 federally insured Black-owned banks.
  • As of September 2022, the number of Black-owned banks has dropped to 20 - a 58% decline.

The players

Michael Neal

Principal research associate for the Housing Finance Policy Center at the Urban Institute.

Stephone Coward

Co-founder of Bank Black USA, an organization that formed out of the larger #BankBlack movement to encourage consumers to move their money to Black-owned banks.

Kenneth Kelly

Former chairman of the National Bankers Association and CEO and chairman of First Independence Bank in Detroit.

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What they’re saying

“'What makes that more poignant is that Black-owned banks have a fraction of the assets that the mainstream banks have.'”

— Stephone Coward, Co-founder of Bank Black USA

“'It is crystal clear that Black banks have not benefited from the same level of support from the government and big business that the 'Big Banks' have. They have significantly fewer resources to pull from to support the communities they serve and beyond.'”

— Stephone Coward, Co-founder of Bank Black USA

“'While true that these institutions have a propensity for serving minorities, they also serve the needs of any people who desire to do business with them.'”

— Kenneth Kelly, CEO and chairman of First Independence Bank

What’s next

Calling your member of Congress is one key way to advocate for policy support for Black-owned banks, which have been dwindling in number but serve an essential role in building wealth in minority communities.

The takeaway

Supporting Black-owned banks is an important step in promoting racial equity and inclusion in the banking system. These mission-driven community banks provide critical financial services to underserved areas, but face significant challenges compared to larger institutions. Increasing awareness and investment in Black-owned banks can help empower Black communities and address the racial wealth gap.