Friday, May 17, 2013

Black-owned banks faces challenges...

When you read this article you note this paragraph:
In the past few years, several Black-owned banks, including the $2 billion-asset ShoreBank, one of the most active lenders on Chicago’s South Side, Covenant Bank and Highland Community Bank have closed or been absorbed into another institution.
Covenant Bank has been absored into the New Orleans, LA based black-owned Liberty Bank earlier this year. However ShoreBank and it's successor Urban Partnership Bank weren't/aren't considered Black-owned. Highland Community Bank well they're not yet closed although I understand that they've been on the brink of closure for a while. In fact, Highland is being courted for purchase by an investment group and I meant to share this article from DNA Info earlier.

Now that we got those qualifiers out of the way, this article is more than appropriate since Chatham at least is home to two Black-owned financial institutions namely Seaway Bank which is headquartered in Chathan and Illinois Service Federal which is headquartered in Bronzeville. In mentioning Seaway here's another thing to note:
“It’s going to be nonbanking-related services that’s going to help them to survive,” he said, citing Chicago’s Seaway Bank & Trust Co., which provides currency exchange services at the airport.
Seaway Bank provides FOREIGN currency exchange services at both O'Hare & Midway airports. Makes sense right? If you're traveling to a foreign nation more than likely you would need to exchange American money for the money of the nations you're traveling to. Whereas a currency exchange, well many of us have different ideas of services offered.

Anyway, we see the history of Black banks their general mission and how they've had to adapt to many changes. Also what can Black banks do to continue to survive and whether or not the idea of a Black-owned bank is considered obsolete. I'm curious to know what you all think.

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