Black-Owned Banks: Issues and Recommendations

by Jacob Duker, T. Morton

Fall 1974

Volume 17
Issue 1

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A number of suggestions have been made here which could be used to advantage by black banks. Several are already being used but on a limited scale. In addition to instances cited in the article, there are several other black or "inter racial" banks which have located in white areas. Among these are the Universal Bank located in the Wall Street area of New York City, the interracial Vanguard National Bank in Hempstead, New York, a Long Island suburban area and the American State Bank of Tulsa, Oklahoma, with a reported 30 percent white customers. Similarly, the black United Mortgage Bankers Association is in the process of using the device of pooling of mortgages. Regarding the Minbanc Capital Corp., it has thus far made four investments totaling about 1,300,000 dollars and has about eight more under consideration, according to Peter F. McNeish of the American Bankers Association. This has been done in a period of less than two years. The pragmatic course of action that has been outlined here is not without its dangers to the black institutions. Some suggestions that have been made might generate black white conflict, black banks may be swallowed by white institutions, they may lose personnel to white institutions or they may become weak appendages of the sponsoring or cooperating white institutions.

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