JP Morgan pledges USD 30 bln for reducing racial wealth gap

Thursday 8 October 2020 13:33 CET | News

JP Morgan has declared it would commit USD 30 billion to address racial inequality over the next 5 years, according to Reuters.

The initiative seeks to provide USD 8 billion in new mortgages for Black and Latino borrowers, USD 14 billion in loans for affording housing projects, USD 2 billion in small business loans, and USD 2 billion in philanthropy. The bank has also committed to do more business with minority suppliers, improve the diversity of its workforce, and open 100 branches in low-income communities.

In comparison, Bank of America and Citigroup have made similar pledges totalling about USD 1 billion each. JP Morgan earned USD 36.4 billion in profit in 2019. So far, most banks have primarily relied on grants to Community Development Financial Institutions (CDFIs), which then handle distributing the loans to under-served communities.

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Keywords: JP Morgan, racial wealth gap, racial inequality, Reuters, mortgage, Black borrowers, Latino borrowers, housing project, small business loans, banks, philanthropy, minority suppliers, Bank of America, Citigroup, Community Development Financial Institutions, CDFIs, loans
Categories: Banking & Fintech
Countries: United States
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Banking & Fintech

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