Banking, a cornerstone of economic activity, has historically been marred by unequal practices, particularly in loans issued to members of minority groups. A recent article on government programs addressing racial disadvantage offers a launching point to discuss similar issues in the banking sector. By not extending credit to minorities, banks not only fail in their social responsibility but also incur significant financial losses. This op-ed aims to highlight the tangible benefits of inclusive banking and the pitfalls of discriminatory practices, using the Navy Federal Credit Union case as a benchmark. Navy Federal, the largest credit union in the U.S., is currently facing a lawsuit over a report that it has been rejecting more than half of applications for conventional mortgages by Black borrowers while approving applications for white borrowers with similar income and debt levels. Banks that overlook minority applicants for loans are missing out on a significant market segment. This...
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