The current count of Black-owned banks in the United States
As of 2024, there are approximately 20 to 25 Black-owned banks operating in the United States, though the exact number shifts as banks open, close, or merge. The Federal Deposit Insurance Corporation (FDIC) tracks all insured banks by ownership, but the definition of "Black-owned" varies depending on the source—some counts require majority Black ownership, while others include banks with significant Black leadership or board representation.
This number represents a decline from earlier decades. In the 1980s, there were roughly 100 Black-owned banks. The reduction reflects broader pressures on community banks, including competition from larger institutions, regulatory costs, and the 2008 financial crisis, which hit smaller banks harder than national ones.
The banks that do operate range from very small institutions serving a single city to regional players with multiple branches and billions in assets. Some of the largest and longest-established include OneUnited Bank (based in Boston), Carver Bancorp (New York), and Mechanics Bank (California).
Key Takeaways
- Approximately 20 to 25 Black-owned banks currently operate in the United States, down significantly from roughly 100 in the 1980s.
- The FDIC maintains records of Black-owned banks, though different organizations may count them differently depending on ownership thresholds.
- Black-owned banks tend to be smaller and more concentrated in major metropolitan areas like New York, California, and the Southeast.
- These banks often focus on lending to Black entrepreneurs and communities that larger banks underserve.
Why the number has declined over time
The sharp drop in Black-owned banks since the 1980s stems from several overlapping causes. Regulatory requirements became more expensive to meet, particularly after the 2008 financial crisis when capital requirements tightened. Smaller banks struggled to compete with national chains that could absorb losses and offer digital services at scale.
Mergers and acquisitions also reduced the count. Some Black-owned banks were acquired by larger institutions; others merged with each other to survive. The cost of maintaining a physical branch network, upgrading technology, and hiring compliance staff grew faster than many smaller banks could manage.
Lending patterns also shifted. After 2008, banks became more conservative about credit, which affected their ability to serve the small-business and community lending that had been their traditional strength.
Where Black-owned banks are located
Black-owned banks are not evenly distributed across the country. The largest concentration is in the Northeast, particularly New York and Massachusetts, followed by California and the Southeast. Some states have no Black-owned banks at all, while others have only one or two.
This geographic clustering reflects both historical settlement patterns and the reality that banks need a minimum customer base to survive. A Black-owned bank typically needs a large enough local Black population and business community to sustain operations, which limits where new banks can realistically open.
What these banks do and who they serve
Black-owned banks typically focus on lending to Black entrepreneurs, small businesses, and homebuyers in communities that larger banks have historically underserved or redlined. They often have deeper ties to their local communities and may be more willing to take on borrowers with thin credit histories or unconventional business models.
Many also offer standard retail banking services—checking and savings accounts, mortgages, business loans, and credit cards. Some have expanded into wealth management and investment services. However, because they are smaller, they may not offer the full range of products or the digital convenience that national banks provide.
The role of these banks extends beyond finance. They often serve as anchors for community development, sponsoring local events, supporting nonprofits, and providing financial literacy programs.
How to find and research Black-owned banks
The FDIC website allows you to search for banks by various criteria, including location and ownership. You can visit fdic.gov and use their "Bank Find" tool to locate institutions in your area. The search results show basic information like branches, assets, and whether the bank is insured.
The National Bankers Association, which represents minority-owned banks, maintains a directory of member institutions. Their website lists banks by state and includes contact information and basic details about each one.
Local chambers of commerce, particularly Black chambers of commerce, often maintain lists of Black-owned financial institutions and can provide referrals. Community development organizations in your area may also have recommendations based on their lending experience.
The difference between Black-owned banks and Black-focused credit unions
Credit unions are separate from banks and operate under different rules. Some credit unions are Black-owned or primarily serve Black communities, and they often outnumber Black-owned banks. Credit unions are member-owned cooperatives rather than shareholder-owned institutions, which affects how they operate and who they serve.
If you are looking for financial services from a Black-owned or Black-focused institution, it is worth exploring both banks and credit unions in your area. Credit unions may offer competitive rates and personalized service, though they typically have smaller branch networks than banks.
Frequently Asked Questions
What counts as a Black-owned bank?
Most sources define a Black-owned bank as one where Black individuals own a majority stake (typically 51% or more). However, some organizations use broader definitions that include banks with significant Black board representation or leadership. The FDIC tracks ownership but does not publish a separate list labeled "Black-owned banks," so you may see different counts depending on the source.
Can I open an account at a Black-owned bank if I do not live near one?
Some Black-owned banks offer online accounts and can serve customers nationwide, though most still operate primarily through physical branches in their home region. Check the bank's website to see whether they accept out-of-state customers and what services are available online versus in-branch only.
Are Black-owned banks FDIC insured?
Most Black-owned banks are FDIC insured, which means deposits up to $250,000 per account are protected if the bank fails. You can verify FDIC insurance status on the FDIC website or by asking the bank directly. This protection is the same as at any other insured bank.
Why should I bank with a Black-owned institution?
People choose Black-owned banks for different reasons: to support Black wealth-building, to access lending that may be more available from community-focused institutions, or to work with staff who understand their community. Some are drawn by the mission; others by the service or rates. The choice depends on your own priorities and what institutions are available in your area.
Is the number of Black-owned banks growing or shrinking?
The number has been shrinking for decades, though the rate of decline has slowed in recent years. There have been some new bank charters granted to Black entrepreneurs, but these have not yet offset the closures and mergers. Industry observers and policymakers continue to discuss ways to support the growth and stability of Black-owned financial institutions.