Black Banks Are Surging, Disrupting Long-Term Flow of Closures.
in less than a year, in a major about-face, new players are entering the Black banking sector.
The latest example came in late February when Redemption Holding Co. (RHC) marks the first time in U.S. history an existing non-Black bank would become a Black-owned minority depository Institution via acquisition.
The proposed deal would reverse a long trend of Black banks closing over the past several years. FDIC data showed 21 Black banks in America as of the fourth quarter of 2022, down a whopping 48 in 2001. The resurgence comes after at least five—counting the RHC deal—Black banks or credit unions have declared start-up or acquisition plans to enter the financial-services space.
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