Capital-raising among minority-owned banks before and after the financial crisis

Federal Reserve Bank of Chicago
Wednesday, October 17, 2018

The financial crisis and recession of 2008 made the availability of capital a significant concern for community banks and led many to seek out additional sources to rebuild their equity. The need for capital may have been even greater for some minority-owned financial institutions, as the markets they serve were hit especially hard by the financial crisis in 2008. This report explores the many recapitalization efforts at minority-owned financial institutions. This allows readers to better understand how some minority banks succeeded in raising new capital, and to identify the trends and policies that might improve capital access in the future.