Showing posts with label Seaway Bank and Trust Co.. Show all posts
Showing posts with label Seaway Bank and Trust Co.. Show all posts

Tuesday, September 17, 2013

CBCF makes a $5 million deposit in Black banks

According to news reports, "The Congressional Black Caucus Foundation, Inc. (CBCF)..(made a) $5 million (deposit) in African-American banking institutions as part of a broader effort to increase the availability of loans for businesses and individuals in African-American communities. In all, five banks will receive $1 million each" in deposits. The Foundation, "established in 1976, is a non-partisan, non-profit, public policy, research and educational institute intended to broaden and elevate the influence of African Americans in the political, legislative and public policy arenas."

The banks are:
  1. Chicago-based Seaway Bank and Trust Co. 
  2. New Orleans-based Liberty Bank and Trust Co. 
  3. Washington, DC-based Industrial Bank
  4. Newark, NJ-based City National Bank
  5. Durham, NC-based M&F Bancorp 

This effort was spearheaded by Ron Busby, Sr., CEO, U.S. Black Chambers, Inc. (pictured right).

All in all, a good move. This is modeled on efforts we spearheaded over 20 years ago:
  • We pioneered the systematic use of financial and social data in the selection and evaluation of financial institutions when we created the first social and financial impact methodology, the Fully Adjusted Return (TM) index, in 1991. 
  • Our work in creating targeted minority bank deposit programs was described in the Wall Street Journal on Friday, August 21, 1992. The Journal article pointed out that, following the Los Angeles riots, many church groups increased their investments in the inner cities. The article cites the efforts of Creative Investment Research in assisting one national church group, the Episcopal Church of the United States. The Church, in an effort to be more careful about urban investing, hired Creative Investment Research to review the financial and social performance of minority-owned banks. We conducted our review based "on several factors, including the number and size of their inner-city loans and their borrowers' repayment rates." The Church, based on our research, "added two minority owned banks there to the 26 minority owned and women-owned banks across the country where it already had decided to deposit $100,000 apiece earlier this year." Creative Investment selected the 26 other minority owned banks, too. By using our research, the Church indicated it was "casting a sharper eye than ever on the bottom line: getting tangible (social and financial) results."