The current count of Black-owned banks in the US

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 slightly depending on the source—some count banks where Black individuals hold majority ownership, while others use different thresholds.

This number represents a significant decline from the 1980s, when there were roughly 100 Black-owned banks. The reduction happened through a combination of mergers, closures during economic downturns, and the difficulty of competing with larger national banks. Despite the smaller count, the remaining Black-owned banks collectively hold billions in assets and serve millions of customers, particularly in communities where access to traditional banking has been limited.

The largest Black-owned banks by asset size include OneUnited Bank (based in Boston), Carver Bancorp (New York), and Mechanics Bank (Oakland, California). These institutions offer standard banking services—checking and savings accounts, loans, mortgages—and many have expanded into digital banking to reach customers beyond their physical branch locations.

Key Takeaways

  • Approximately 20 to 25 Black-owned banks currently operate in the United States, a significant decrease from roughly 100 in the 1980s.
  • The FDIC maintains the official registry of all insured banks, including those with Black ownership, though different organizations may count ownership differently.
  • OneUnited Bank, Carver Bancorp, and Mechanics Bank are among the largest Black-owned banks by total assets.
  • Black-owned banks offer standard financial services including checking, savings, loans, and mortgages, often with a focus on underserved communities.
  • The decline in Black-owned banks reflects broader challenges in the banking industry, including competition from larger institutions and economic pressures.

Why the number of Black-owned banks has declined

The drop from 100 banks in the 1980s to roughly 20 today reflects several overlapping pressures. The 2008 financial crisis hit smaller banks particularly hard—several Black-owned institutions failed or were forced to merge to survive. Larger national banks with more capital reserves weathered the downturn more easily, giving them a competitive advantage they have maintained since.

Regulatory compliance costs have also risen significantly. Banks must meet capital requirements, undergo regular audits, and maintain expensive technology infrastructure to compete with digital-first competitors. Smaller institutions, including many Black-owned banks, struggle to absorb these costs without the economies of scale that large banks enjoy.

Consolidation in the banking industry has accelerated over the past two decades. When a Black-owned bank merges with a larger institution, it may cease to exist as an independent entity, even if Black executives remain involved. This structural change means fewer standalone Black-owned banks, though some of the capital and customer relationships may be preserved within larger organizations.

Where to find Black-owned banks and their services

The National Bankers Association maintains a directory of Black-owned banks and can point you toward institutions in your region. Many Black-owned banks operate primarily in specific states or metropolitan areas—for example, OneUnited Bank has branches in Massachusetts, Florida, and California, while Carver Bancorp operates mainly in New York.

Most Black-owned banks now offer online banking, mobile apps, and remote account opening, so you do not need to live near a physical branch to become a customer. Some also offer services tailored to small business owners and entrepreneurs, including business loans and merchant services. Checking account requirements, interest rates, and fees vary by institution, so comparing options before opening an account makes sense.

If you want to support Black-owned financial institutions but do not have a Black-owned bank in your area, some credit unions and community development financial institutions (CDFIs) are also Black-owned or Black-led and offer similar services. The Community Development Financial Institutions Fund, run by the U.S. Department of the Treasury, maintains a searchable database of CDFIs by location and service type.

How Black-owned banks differ from larger national banks

Black-owned banks typically focus on lending to and serving communities that larger banks have historically underserved or overlooked. This includes small business loans to Black entrepreneurs, mortgages for homebuyers in lower-income neighborhoods, and personal loans when credit history is limited. While larger banks may decline these applications based on strict algorithmic scoring, Black-owned banks often use relationship-based lending—evaluating the whole person or business rather than a single metric.

The trade-off is that Black-owned banks may have higher fees or interest rates in some cases, because they carry more risk and have fewer customers to spread costs across. However, many customers value the personalized service, community connection, and mission-driven approach that Black-owned banks offer, even if rates are not always the lowest available.

Black-owned banks also tend to reinvest profits back into their communities through sponsorships, charitable giving, and employment. This means your deposits and fees may directly support local organizations and job creation in ways that deposits at a national bank do not.

The role of Black-owned banks in the broader financial system

Black-owned banks represent a small fraction of total U.S. banking assets—less than 1 percent—but their impact on wealth-building and economic opportunity in Black communities is disproportionately large. They have historically been one of the few sources of capital for Black business owners and homebuyers who faced discrimination or exclusion from mainstream lending.

Federal policy has supported Black-owned banks through programs like the Community Reinvestment Act, which requires banks to serve the communities where they operate, and through targeted lending initiatives. However, these banks still face structural disadvantages compared to larger competitors, including higher borrowing costs and less access to capital markets.

Recent years have seen renewed interest in supporting Black-owned financial institutions, both from customers seeking to direct their money toward mission-driven banks and from policymakers recognizing the role these banks play in closing racial wealth gaps. This attention has not reversed the long-term decline in the number of Black-owned banks, but it has stabilized some institutions and supported the growth of newer ones.

How to research Black-owned banks before opening an account

Start by checking whether the bank is FDIC-insured. This protects your deposits up to $250,000 per account category if the bank fails. You can verify FDIC insurance status on the FDIC's official website by searching the bank's name.

Next, compare basic account features: minimum balance requirements, monthly fees, interest rates on savings accounts, and overdraft policies. Many Black-owned banks publish this information online, though you may need to call or visit a branch to get complete details. Read customer reviews on independent sites, but remember that reviews tend to skew toward people with strong opinions—either very satisfied or very frustrated.

If you are considering a loan or mortgage, ask about the bank's underwriting process and whether they work with borrowers who have limited credit history or non-traditional income sources. Some Black-owned banks specialize in these areas and may be more flexible than national banks.

Frequently Asked Questions

Is my money safe in a Black-owned bank?

Yes, if the bank is FDIC-insured. Your deposits are protected up to $250,000 per account type, the same as at any other insured bank. You can verify FDIC insurance status on the FDIC website by searching the bank's name. Black-owned banks must meet the same regulatory standards and capital requirements as any other bank.

Do Black-owned banks charge higher fees than big national banks?

Not always, but it varies by institution and account type. Some Black-owned banks offer competitive rates to attract customers, while others may charge higher fees because they serve riskier borrowers or have smaller customer bases to spread costs across. Compare specific accounts and fees before deciding.

Can I open an account at a Black-owned bank if I do not live near a branch?

Yes. Most Black-owned banks now offer online account opening and mobile banking apps, so you can open an account and manage your money remotely. Some may still require an in-person visit for certain services like loan applications, but basic checking and savings accounts can usually be opened entirely online.

What is the difference between a Black-owned bank and a CDFI?

A Black-owned bank is a bank where Black individuals hold majority ownership. A CDFI is a financial institution—bank, credit union, or lender—certified by the federal government to serve low-income or underserved communities. Some Black-owned banks are also CDFIs, but not all CDFIs are Black-owned. Both focus on lending to communities that mainstream banks often overlook.

Where can I find a complete list of Black-owned banks?

The National Bankers Association maintains a directory of Black-owned banks on its website. The FDIC also publishes data on all insured banks by ownership type, though you will need to filter the data yourself. Local community development organizations and your city or county economic development office may also have lists of Black-owned financial institutions in your area.