New York — Chicago is pumping deposits into the last black-owned bank based in the city, bolstering a lender that began in the Great Depression, as officials join a nationwide movement to steer idle funds to underserved communities. The third-largest US metropolis is entrusting $20m to Illinois Service Federal Savings & Loan Association, the city’s treasurer, Kurt Summers, announced on Monday. The decision follows a grass-roots campaign, often dubbed #BankBlack, that has urged consumers over the past year to park their money at black-owned lenders. Institutions such as municipalities should take part too, Summers said in an interview. "If we’re going to be serious about supporting those communities and supporting community banks and what they do for small businesses, we have to look for opportunities like this," he said. Black-owned banks proliferated after the Civil War and through Jim Crow segregation to counter discriminatory lending practices once deeply entrenched in mainstream...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.