What is the term for a practice where a bank refuses to lend based on race or ethnicity?

The practice described in the question refers to "redlining," which is the systematic refusal of lending institutions to provide loans or mortgages to individuals based on their race or ethnicity. This term originates from the practice where banks would outline areas on a map in red ink, indicating neighborhoods where they would not invest, often corresponding with areas predominantly inhabited by people of color. Redlining has significant implications, as it perpetuates racial segregation and economic inequality by denying access to essential financial services.

In contrast, blockbusting involves real estate agents persuading homeowners to sell their properties at low prices, often by instilling fear that racial minorities are moving into the neighborhood. Steering refers to directing potential homebuyers or renters towards or away from certain neighborhoods based on race or ethnicity, which can also create discriminatory housing patterns. Fair lending, on the other hand, involves practices aimed at eliminating discrimination in lending, promoting equitable access to credit for all individuals regardless of their racial or ethnic background.