A pilot study of the impact of minority banks on their communities

The results of this pilot study generally support the arguments advanced for the establishment and support of minority-owned commercial banks in predominantly minority populated (and typically economically depressed) areas. The two minority-owned and operated banks in this study were observed to have had some positive impact on (1) the pricing of loan services by non-minority banks serving the relevant primary market area, (2) the financing of minority businesses, (3) the employment of minority group members in the midwest city bank industry (most importantly in middle and top level management positions), (4) the attitudes expressed by residents of the banks' immediate community, and (5) education of residents in banking procedures.