KPMG LLP is working with LendingTree, Dentons, and Comer Capital to help strategize and advise the Black Bank Fund and National Black Bank Foundation (“The Foundation”) in support of their mission to strengthen Black-owned banks through direct investment of tier 1 capital.
By purchasing non-cumulative, non-voting, preferred stock that can be immediately translated into tier 1 capital, the Black Bank Fund will provide additional capital that will allow Black-owned banks to extend new loans to Black entrepreneurs, families, and businesses. The Foundation, a nonprofit, will simultaneously provide financial literacy and wealth-building programs for the communities in which these banks operate.
“KPMG is excited to work together with other corporate and philanthropic partners to help Black-owned banks thrive and grow. This is a prime example of work that exemplifies our values. It’s not only good for business, but also good for communities,” said Eric Logan, principal in KPMG’s Deal Advisory and Strategy practice.
Tier 1 capital, the measure of a bank’s financial strength, is largely calculated by common stock and retained earnings and can include non-cumulative perpetual preferred stock and other adjustments. Due to comparatively smaller assets to larger national banks, the 18 Black-owned banks in the United States are challenged to offer their customers loans as banks create credit roughly equivalent to ten times their tier 1 capital. As a result, many Black businesses and families are challenged to find the access to capital they need to prosper from the banks in their communities.
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity, and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.