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- Title
Exploring How Racial and Socioeconomic Inequalities Influence Access to Loans, Mortgages, and Credit.
- Authors
Confer, Christine
- Abstract
This article examines the impact of racial and socioeconomic inequalities on access to loans, mortgages, and credit in the banking and financial sector. It discusses the history of discriminatory practices in the banking system and the establishment of black-owned banks by African Americans. The article highlights ongoing disparities in banking, including the unequal distribution of benefits during the New Deal and the racial wealth gap. It concludes by exploring potential solutions to address these inequalities. The text also addresses the racial disparities in wealth and access to financial services in the United States, emphasizing the historical impact of slavery on the wealth gap. It discusses the lack of access to traditional banking services in marginalized communities and the reliance on alternative financial services. The economic costs of systemic racism are emphasized, and achieving racial and social equality is seen as crucial for economic development globally. The text highlights disparities in access to credit for African and black Americans, including differences in interest rates on business loans and the growth of local businesses in Black neighborhoods. Proposed solutions include improved banking supervision and support for minority depository institutions. The historical legacy of slavery has contributed to financial discrimination and exclusion for Black Americans, resulting in wealth disparities and limited access to quality healthcare and infrastructure. Closing the racial wealth gap is important for both black families and the broader U.S. economy. Black-owned banks have historically supported the economic well-being of Black communities, but face challenges in accessing capital and attracting investors. Identifying and addressing the factors contributing to the racial wealth gap is crucial for promoting economic equality.
- Subjects
WASHINGTON, George, 1732-1799; PAYDAY loans; OVERDRAFTS; LOANS; RACIAL inequality; SOCIOECONOMIC factors; BUSINESSPEOPLE; AFRICAN Americans
- Publication
Journal of Applied Professional Studies, 2024, Vol 5, Issue 10, p1
- ISSN
2694-2577
- Publication type
Article