There are just one fewer commercial banks and savings institutions than MDIs. A lot can be gleaned about the rise of Asian Americans by looking at the size and profitability of these financial institutions. More than half of all immigrants to the United States are predicted to come from Asia in the next half-century.
What Is a Minority Depository Institution?
The Federal Deposit Insurance Corporation insures 4,839 commercial banks and savings organizations in the United States as of 2021. One of these entities must be classified as an MDI by the FDIC to: "When the majority of a federally insured depository institution's voting stock is held by members of a historically underserved minority group, the institution qualifies as a "metropolitan minority depository institution."
To be considered for calculating minority ownership, an entity's owners must be U.S. citizens or lawful permanent residents." The Federal Reserve added women-owned financial institutions to this category in 2021.
The Importance of Asian American-Owned Banks
Most people's financial well-being depends on the services their local bank provides. These financial institutions provide various services, including the ability to open a personal or company checking or savings account, loans, mortgages, and credit cards. In other words, banks give people the resources to further their careers or get by.
Asian Americans are the fastest-growing racial group, as previously stated. They will naturally expand for financial institutions that deal with, are operated by, and understand the specific economic realities of native and foreign-born Asian Americans.
Personal and commercial demands vary widely across the Asian American community. According to Bureau of Labor Statistics for Q4 of 2021, Asian employees earn more per week than White, Black, and Latino workers.
Top Asian American Owned Banks
The top Asian American-owned banks cover a wide range of service areas. Assets are shown in the order in which they were accrued.
East-West Bank
An independent banking institution in Southern California, East West Bank is the holding company of East West Bancorp, a publicly listed firm. To satisfy the financial requirements of Chinese Americans in Los Angeles, East West Bank was the first federally licensed savings institution to open. Since its creation, several nonprofit and community-based groups have joined forces with East West Bank to assist underprivileged populations better.
Cathay Bank
Since its inception in 1962, Cathay Bank has been the oldest Chinese-American-owned bank in the United States. After opening a Hong Kong representative office in 1985 and a New York branch in 1999, Cathay Bank became the first Cathay General Bancorp affiliate to operate outside California. Cathay Bank has expanded to seven states from Beijing to Shanghai to Taipei.
With a market capitalization of over $100 billion in 2000, Cathay was one of the top 100 Nasdaq-listed companies. The Cathay Bank Annual Charity Golf Tournament has raised over $1.7 million for Southern California nonprofits since 1977.
Bank of Hope
Bank of Hope, a subsidiary of Hope Bancorp, is the first and only Korean American superregional bank in the United States. Since its inception in Los Angeles, Bank of Hope has served the nation's greatest concentration of Korean-Americans. Additionally, the Bank of Hope's Hope Scholarship Foundation has donated millions of dollars to students.
Preferred Bank
Founded in 1991, Preferred Bank was the largest state-chartered bank in California's history when its initial $20.18 million offerings were oversubscribed. This separates Preferred Bank from its competitors in the middle-market manufacturing, retail, and distribution sector and importers of international market enterprises.
CTBC Bank Corp. (USA)
In 1989, the China Trust Bank of New York was established as CTBC Bank. China Trust Holdings Corp. purchased Trans National Bank of California in 1995 and renamed it China Trust Bank in California, bringing this one of the Asian American banks to trade on both coasts. CTBC Bank and Tokyo Star Bank combined in 2014, the first time a Japanese bank and a foreign-owned one had ever merged. In 2015, CTBC bank's parent firm also purchased Taiwan Life Insurance Co.
Royal Business Bank
Royal Business Bank is the list's newest financial institution, having opened its doors in Los Angeles in 2008. Throughout the years, Royal Business Bank has expanded its network of branches and received numerous accolades, including a "Super Premier" designation from Findley Reports in 2014, the Giraffe Award from National Asian American Coalition, also placing third in S&P World Economic Intelligence's ranking of top-performing regional banks with assets between $1 billion–10 billion in 2016.
Bank of Guam
When Hurricane Pamela hit Guam in 1976, the bank offered emergency loans for house repairs, more than $5 million in emergency food stamps, and just a $5 million loan to the government of Guam to help with typhoon relief. The People's Bank was founded in 1972 and has a long history of humanitarian service. The Bank of Guam became an important financial institution in the Western Pacific by 1980.
