Minority Banks

Your articles (March 5 and March 20) concerning the lending practice of Cathay Bank and Los Angeles Councilman Michael Woo’s stand on injecting minority bank capital into the inner cities misportrayed the role of minority banks in serving the financial needs of the community.

Minority banks fully embrace their role as investors in the inner cities. Woo has formed a consortium called the Los Angeles Community Bank Clearinghouse that aims to finance potentially bankable deals in the inner cities. Minority banks, including Taiwanese, Chinese, Korean, African-American and Latino community banks, have enthusiastically responded to Woo’s request and are all involved in this coalition to help businesses in the inner cities.

Minority banks provide banking services to the inner-cities and minority groups that have difficulties in finding financial support. Your articles implicitly criticized Cathay Bank for making most of its home loans in 1991 to Asian-Americans, when you did not consider what difficulties Cathay may have faced in reaching the other minority groups. General Bank is a minority bank that services many Taiwanese immigrants. However, our expertise and proficiency in serving this group did not limit us from reaching out to other minority groups. We open our doors to all applicants regardless of race. We advertise our products and services in English, Chinese and Spanish newspapers. Though the response from Latinos and African-Americans has been minimal relative to that from Taiwanese and Chinese, one cannot therefore infer that we discriminate against other minorities. What we can do and have done is to assure that all residents and businesses in the community are aware of the products and services we offer; what we cannot do is to coerce customers into banking with General Bank.

All minority banks should have an opportunity to obtain deposits from the city and local agencies. Minority banks play an important role in serving the financial needs of the community. Without minority banks, the minority groups would have nowhere to turn for credit assistance.

The mainstream financial institutions have a role to play in the community, as do minority banks. Though their roles differ, both are equally important to the financial structure of our community.

LI-PEI WU

Chairman, General Bank

Los Angeles