Showing posts with label black banks. Show all posts
Showing posts with label black banks. Show all posts

Wednesday, July 01, 2020

Netflix investing $100 million in Black banks and financial institutions

Netflix is going to allocate two percent of our cash holdings - initially up to $100 million - into financial institutions and organizations that directly support Black communities in the U.S.

Netflix believes bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow. According to the FDIC, banks that are Black-owned or led represent a mere one percent of America’s commercial banking assets. This is one factor contributing to 19 percent of Black families having either negative wealth or no assets at all - more than double the rate of White households - according to the U.S. Federal Reserve. Black banks have been fighting to better their communities for decades but they’re disadvantaged by their lack of access to capital. The major banks, where big multinational companies including ours keep most of their money, are also focusing more on improving equity, but not at the grassroots level these Black-led institutions can and do. The company wants to redirect some of its cash specifically toward these communities, and hope to inspire other large companies to do the same with their cash deposits.

As the first step in this $100 million commitment, the company will be holding $35 million of our cash in two vehicles:

$25 million will be moved to a newly established fund called the Black Economic Development Initiative. It will be managed by the Local Initiatives Support Corporation (LISC), a non-profit with a track record of developing underinvested communities. They will invest the funds into Black financial institutions serving low and moderate-income communities and Black community development corporations in the U.S. $10 million will go to Hope Credit Union in the form of a Transformational Deposit to fuel economic opportunity in underserved communities across the Deep South. Bill Bynum, CEO of HOPE, has spent the last three decades advancing economic mobility in distressed communities.

This capital will fuel social mobility and opportunity in the low- and moderate-income communities these groups serve. The plan is to redirect even more cash to Black-led and focused institutions as the company grows, and to hope other companies will do the same. For example, if every company in the S&P 500 allocated a modest amount of their cash holdings into efforts like the Black Economic Development Initiative, each one percent of their cash would represent $20-$30 billion of new capital. And that would help build stronger communities, offering more Black families pathways to prosperity and a more equitable future.

Sunday, November 17, 2019

Black owned Industrial Bank expands into NJ and NY

Since 1934, Industrial Bank has played a pivotal role in the growth and economic development of the Washington, DC metropolitan area through its essential products and services, customer care and community service. Today, the Bank announced it has acquired City National Bank of New Jersey, with two branches in New Jersey and one branch in Harlem, New York.

“We’re excited about welcoming City National Bank’s customers and teammates to the Industrial Bank family.” stated Industrial Bank President and CEO B. Doyle Mitchell, Jr.. “This acquisition will allow us to expand our footprint into the northeast region and deepen our commitment to impacting economic development in various communities”.

Much like Industrial Bank, City National Bank was started to fill a great economic void within the African American community whose access to credit and banking services was historically limited. We consider this more of a partnership than an acquisition as we have enjoyed a long-standing relationship with City National Bank and its great team of bankers who share our common values and commitment to community service.

On top of loan awards and financial services, as a Community Development Financial Institution (CDFI), Industrial Bank reinvests over 60% of its assets back into the community every year and continues to activate and support community programs. Bank President B. Doyle Mitchell, Jr., as did his father and grandfather before him, still believes in the importance and power of financial education, entrepreneurship and homeownership.

On August 20th, Industrial Bank celebrated its 85th anniversary and remains committed to giving back to any community that it calls home.

ABOUT INDUSTRIAL BANK: Industrial Bank is one of the largest African American owned banks in the United States. Since 1934, Industrial Bank has been a strong partner for small and large businesses, homeowners, and personal banking account customers in the Washington, DC and surrounding metropolitan areas.>/p>

Monday, September 18, 2017

City to deposit $20 million in Chicago's last black-owned bank

The last black-owned bank in Chicago is set to receive a $20 million deposit of city funds.

City Treasurer Kurt Summers on Monday announced the deposit into Illinois Service Federal Savings and Loan Association.

Founded in Chicago in 1934 to help give the black community better access to credit, ISF Bank is one of just more than 20 black-owned banks in the country, according to the Federal Deposit Insurance Corp.

The deposit is meant to help drive economic development in the city's neighborhoods, Summers said.

"It's about being a community bank," said Summers, noting that his office works to invest in the city's neighborhoods and institutions. "Community banks are a great opportunity for that because they are designed for the sole purpose of reinvesting in their local area."

On average, the city keeps between $300 million and $700 million on deposit in banks. In order to receive deposits of city funds, financial institutions must go through a special certification process.

The deposit at ISF Bank, which went through the certification process, is the first the city has made with the intent to bolster a community bank, Summers said.

Read more: City to deposit $20 million in Chicago's last black-owned bank