JPMorgan Chase pledged that it will allot $30 billion for its long-term commitment to address racial wealth gap in the US. The multinational investment bank will help underserved communities to open bank accounts.
Closing Racial Wealth Gap
The large bank announced that it would dedicate $30 billion in a span of five years to close the current racial wealth gap in the US. JPMorgan promised to give economic opportunities to underserved communities, especially the Black and Latinx. The bank’s efforts would include loans, investments, and philanthropy in an attempt to “break down barriers of systemic racism.“
JPMorgan commits billions of dollars to improving racial equity, including a pledge to underwrite home loans for Black and Latinx borrowers https://t.co/4enCW8Dzte
— Bloomberg (@business) October 8, 2020
Actually, JPMorgan is not the first in this effort. In recent months, intense protests against racial inequality sparked the attention of many people across the globe. It follows the tragic killing of George Floyd in May. Following public demand for significant change, companies respond with efforts to combat the issue. Previously, Citigroup said it will dedicate $1 billion to address racial wealth gap in the US.
Chief exec and chairman of JPMorgan, Jamie Dimo, considers systemic racism as a tragic part of the country’s history. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people.”
JPMorgan’s efforts would include expanding affordable housing programs to underserved communities. For this, the bank would boost home purchase loans for Black and Latinx people. Moreover, JPMorgan would improve key home lending products.
Additionally, JPMorgan would provide additional loans to minority-owned small businesses. The company will launch a new program with coaching, technical assistance, and capital, it said.
Furthermore, JPMorgan also intends to improve financial health and access to banking among minorities. Also, the bank said it will open new Community Center branches in underserved and underbanked areas.