Two black banks—Industrial Bank and Citizens Trust Bank—have each received $5 million in grants from financial services giant Morgan Stanley.
The $10 million in grants to the minority depository institutions (MDIs) will allow them to build up loan loss reserves to help deal with the economic impact of COVID-19. The grants will also help the banks assist small businesses impacted by COVID-19, specifically ones that did not get federal relief loans. Morgan Stanley added the grants will be used to support additional investments into technology systems to enhance the delivery of customer, mortgage, and business lending services.
“Morgan Stanley is committed to supporting communities in need during this tragic health crisis, and particularly to supporting minority communities that have been impacted more substantially by COVID-19,” Shelley O’Connor, chairman and CEO of Morgan Stanley Private Bank, National Association and Morgan Stanley Bank, N.A., stated in a news release.
“We are pleased to make these commitments to our MDI partners so they can continue and deepen their important work as anchor financial institutions in their cities. Industrial Bank and Citizens Trust each have a longstanding mission to serve minority communities, and they play a critical role in the economic recovery of neighborhoods and cities.”
Washington, D.C-based Industrial Bank and Atlanta-based Citizens Trust Bank are on the BE Banks list of the nation’s largest black-owned banks. New York City-based Morgan Stanley is a global financial services firm offering investment banking, securities, wealth management, and investment management services.
B. Doyle Mitchell, Jr., Industrial Bank’s president and CEO, stated, “Industrial Bank is delighted to have been chosen by Morgan Stanley to receive this grant that will ensure the Bank is able to continue its good work in the community. In addition, this will allow us to assist even more customers in their fight to survive in these difficult times.”
Cynthia Day, president and CEO of Citizens Trust Bank and Citizens Bancshares Corp., stated what the grant will allow the bank to do.
“In 1921, almost 100 years ago, Citizens Trust Bank was founded on bridging the gap created by the lack of access to financial resources to minority communities and the inequalities this represented. During this pandemic, when our communities are more severely impacted, our commitment to this mission carries an even greater significance. We thank and applaud Morgan Stanley for their genuine engagement and partnership. Their bold action will assist us in continuing to support our communities, expand our reach and create meaningful change.”