redlining
Definition
Redlining is the discriminatory practice by which banks, insurance companies, and other institutions refuse or limit loans, mortgages, insurance, or other financial services in certain neighborhoods based on racial or ethnic composition without regard to the residents' qualifications or creditworthiness. It historically contributed to racial segregation and the economic disparities seen between different racial and ethnic communities.
Analogy
Imagine a library that only allows people from certain neighborhoods to access its collection of books while completely barring others based on where they live. Just as this would limit the knowledge and resources available to those excluded communities, redlining restricts access to financial services and opportunities based on location, reinforcing economic divides.
Related terms
Racial Segregation: The enforced separation of different racial groups in a country, community, or establishment.
Economic Disparities: Differences in wealth, income, and access to resources among different racial, ethnic, or socioeconomic groups.
Institutional Racism: A form of racism expressed in the practice of social and political institutions that disproportionately negatively affects members of minority groups
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