Black-owned banking institutions did not occur until significantly more than a hundred years following the Bank of united states first exposed its doorways.
Ahead of the chartering associated with very very very first bank that is black-owned 1888, Congress and President Lincoln established the Freedman’s Savings Bank in 1865. This institution was designed to help newly freed African Americans navigate the U.S. financial system as part of the FreedmanвЂ™s Bureau. п»ї п»ї
Despite Congress voting to shut the Freedman’s Bureau in 1872, the lender proceeded to work. In 1874, Frederick Douglass took over once the bank’s D.C. branch manager, in which he discovered the area to be rife with corruption and investments that are risky. Despite Douglass investing $10,000 of their very own cash within the bank so that they can conserve it, Freedman’s Savings went bankrupt later that exact same year. п»ї п»ї Although the Freedman’s Savings Bank does not fit the present day requirements of a Black-owned bank, it represents a crucial first rung on the ladder.
The initial formally chartered Black-owned bank, the genuine Reformers Bank, had been established on March 2, 1888, by Reverend William Washington Browne. Read more