Yesterday's WSJ featured an article on the struggles of black-owned banks. It was an OK article, but it left out a lot. Some of what was left out is good news. Part of the reason black banks are struggling is their customer base has more options. The article does say that more traditional banks are moving into the territory of these banks (part of that might be gentrification). However, the article also says that as these banks close, so-called "predatory lenders" move in, charging "exorbitant rates and fees." The reality is these lenders are probably charging what their models say they should, based in part on the reasons why those traditional banks exited the market.
The biggest flaw in this article is it doesn't contain any mention of regulation. Black-owned banks, like other community banks and small financial firms, are facing ever-mounting regulations. They can't afford to meet all these regulatory requirements and serve their customers. The irony is the same folks who are going after auto creditors with half-baked ideas about "disparate impact" are impacting lack-owned banks as equally as every other financial firm.