Of all the of minority depository institutions (MDI) in the United States, the largest single group is composed of the 71 Asian or Pacific Islander American-owned banks. Collectively, these commercial banks and savings institutions amount to just one fewer than all the other MDIs combined.
The size and success of these banks say a lot about the growth of the Asian American community. Asian Americans are the fastest-growing racial group in the U.S. and are expected to be the largest immigrant group in 50 years time.
- The nation’s 71 Asian or Pacific Islander American-owned banks are the largest single group of minority depository institutions (MDIs) by race.
- Six of the the top 10 banks have 51% or more of their voting stock owned by Asian and/or Pacific Islander American individuals;
- Four of the largest banks have a majority of Asian and/or Pacific Islander American directors on their boards and serve communities that are predominantly Asian and/or Pacific Islander American.
- For the 71 banks as a whole, the division is similar but more extreme: 60 in the voting-stock group and 11 in the majority-of-directors group.
- East West Bank is the largest Asian American-owned bank in the U.S., with $49.4 billion in total assets.
What Is a Minority Depository Institution?
As of 2019, there were 5,177 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) in the United States. For the FDIC to classify one of them as an MDI, it must be “…a federal insured depository institution for which (1) 51 percent or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. Ownership must be by U.S. citizens or permanent legal U.S. residents to be counted in determining minority ownership.”
Of the 71 Asian or Pacific Islander American-owned banks, 60 fall into the first category and 11 into the second. Among the top 10 banks, six are category one institutions; Bank of Hope, Hanmi Bank, CTBC Bank Corp. (USA), and Royal Business Bank are category two.
For the purposes of this article—due to the already significant number of active banks—Asian American-owned and managed credit unions that serve the community have been excluded. Our list focuses on the 10 most successful Asian American-owned banks currently operating. The article uses the term “Asian American-owned” in a broad sense, recognizing that stockholders own for-profit banks.
Why Asian American-Owned Banks Are Important
Banks play a crucial role in most people’s financial lives. They offer checking and savings accounts for safely storing money, loans for both individual and business purposes, mortgages for real estate purchases, and credit cards. In short, banks…
Read More: Top 10 Asian American-Owned Banks