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Researchers probe Black financial institutions and asset valuation in early 20th-century Colorado

August 13, 2025 | Black Coloradan Racial Equity Study Commission, YEAR-ROUND COMMITTEES, Committees, Legislative, Colorado


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Researchers probe Black financial institutions and asset valuation in early 20th-century Colorado
John Valdez, the study’s researcher focusing on wealth and banking, told commissioners he has identified Black financial institutions, community financing through churches and other nonbank lenders that served Black Coloradans in the early 20th century. Why it matters: Historical patterns in banking, asset valuation and access to credit shape long-term wealth gaps; documenting those patterns helps explain how asset-building opportunities were limited for Black families. Valdez said his research identified institutions that performed banking functions —loan offices, community savings organizations and business ventures that sold shares to Black customers— and that churches often hosted community financing arrangements. Valdez told the commission that Colorado did not always have Black-chartered banks, so residents sometimes used Black banks in other states. He warned that relying on publicly available or suppressed datasets can undercount racial disparities; he said the team is seeking unsuppressed census and agency data to avoid measurement bias. Valdez also said he is investigating links between Klan membership in local banks and discriminatory policies that impeded Black access to credit. Commissioners asked whether common forms of property (land, livestock) were treated differently when valued as collateral for Black borrowers; Valdez said the team has found anecdotal leads and is working to corroborate them but cannot yet draw firm conclusions. He asked commissioners to help facilitate access to historical data held by state agencies and local repositories.

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