On Oct. 17, 1888, Capital Savings Bank, the first Black-owned and operated bank in the United States, was founded in Washington, D.C. The bank played a crucial role in fostering Black entrepreneurship by offering loans to Black-owned businesses and landowners, who were often denied by white-owned banks.
By 1892, Capital Savings Bank had grown in reputation, holding deposits totaling $300,000. Although the bank closed in 1902, it set a powerful example for other Black-owned financial institutions.
Between 1888 and 1934, 134 Black banks were established, driving a surge in Black-owned businesses. From 1867 to 1917, the number of Black businesses grew from 4,000 to 50,000, according to the Federal Reserve.
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