Proclaiming a "historic" pact that will help erase pockets of blight in Baltimore, a group of 60 African-American churches formally agreed yesterday to have exclusive banking relationships with four local financial institutions, including NationsBank, the area's largest.
In exchange, the financial institutions agreed to treat the churches and their members fairly, not denying them loans or making them pay a penalty simply for living or operating in the inner city. The banks will also provide an array of perquisites, including summer internships and scholarships for member-church high school and college students.
"History has been made in this place today," said the Rev. Vashti McKenzie, president of the Collective Banking Group of Baltimore and Vicinity, after signing agreements with the bank presidents.
The interdenominational collective represents several hundred thousand members in some of Baltimore's most venerable religious institutions and includes a few suburban churches and other institutions, leaders said.
Leaders of the collective said they expect that the banks would get millions of dollars in new deposits from the churches alone.
At New Shiloh Baptist Church yesterday, 300 church members greeted the presidents of NationsBank and First Union Corp. and two black-owned institutions, Harbor Bank of Maryland and Advance Federal Savings and Loan, with loud applause. The two-hour program at the West Baltimore church combined the characteristics of a church service and a corporate board meeting, and culminated in the signing of the agreements.
Mayor Kurt L. Schmoke hailed the agreements as proof that "business is once again discovering there is an advantage to doing business in the inner city."
Church members were equally enthusiastic.
"I'm going to move my business and my personal accounts to one of these banks," said Harriett Pearson, owner of the Millard Development Co. and a member of McKenzie's Payne Memorial African Methodist Episcopal Church in West Baltimore.
"It's time for us to come together financially, and the church is the place to do it."
Each financial institution reported opening three to 10 accounts yesterday and talking to dozens of people who plan to open accounts.
"It is simply good business to be involved in the collective," said William Couper, NationsBank president for the greater Baltimore area.
