EDITORIAL: Self-Destructive Economics
By: Nate Abraham Jr.
October 19, 2015 (Carolina Panorama (Columbia, SC)) According to a report released by the Federal Deposit Insurance Corporation, bank deposits in the Midlands grew by 8.6 percent in over the past year.
According to a report released by the Federal Deposit Insurance Corporation, bank deposits in the Midlands grew by 8.6 percent in over the past year. Bank deposits in the Midlands increased by over $1.4 billion, growing from $16.2 billion to $17.6 billion. Statewide, bank deposits jumped 6.92 percent to $75.1 billion.
But while this growth was going on, the only Blackowned bank in South Carolina, Columbia-based South Carolina Community Bank, closed four of its five branches. Despite the fact that there are over 288,000 Black folks in Richland, Sumter and Orangeburg counties, where the four closed branches were located Black folks could not or would not muster enough to keep them open.
What is even more pathetic is that SC Community Bank has a market share of 0.31 percent in the Columbia Metro area not even one-half of one percent. And this in a county where Black folks are 46.9 percent of the population.
The problem is not limited to South Carolina. Two Blackowned banks in the city of Chicago have closed this year, also due to a lack of community support.
According to the UrbanIntellectuals website, there are 21 Black-owned banks left in the United States. These banks have total assets of approximately $4.7 billion dollars. But this is a measly 0.43 percent of the $1.1 trillion dollars of annual spending power of the African American community. Over $1 trillion flow through the Black community annual, but we only keep $4.7 billion dollars of this in Black-owned Banks.
Twenty years ago, there were a total of 54 Black-owned banks nationwide. At the rate we are going, we will be down in the single digits over the next few years.