JPMorgan Chase & Co. announced this week a $30 billion plan to advance racial equity and help remedy the country’s racial wealth gap over the next five years, as it relates mainly to underserved Black and Latinx communities, CNBC reports.
According to CNBC, the bank’s pledge includes a combination of loans, investments, and philanthropy efforts that is expected to stretch beyond its normal course of business.
The banking institution shared that barriers within the U.S.’ financial structures has generated profound racial inequalities that have been especially apparent amid the COVID-19 pandemic. JPMorgan Chase’s new commitment arrives to help drive more inclusive measures for the economy’s recovery efforts and eliminate systemic racism.
“Systemic racism is a tragic part of America’s history,” said Jamie Dimon — Chairman and CEO, MDIs JPMorgan Chase & Co. — in a press statement. “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. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”
Forbes reports that as part of its $30 billion commitment, JPMorgan Chase has allocated $8 billion toward 40,000 mortgages for Black and Latinx households in America as well as 100,000 affordable housing units for impoverished communities in need, offering $14 million in the process.
The bank is striving to provide 15,000 business loans to Black, Latinx and minority entrepreneurs for a total of $2 million, according to a news release, while also investing millions into minority-owned banks, credit unions and community development finance institutions.
Additionally, the bank also announced that it would spend another $750 million on Black and Latinx U.S. suppliers.
The mission behind this pledge is to ultimately improve the financial health and access to proper banking institutions in Black and Latinx communities across America.
To do this, JPMorgan Chase will invest up to $50 million in capital and deposits in Black and Latinx-led Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs), according to the release. Moreover, the banking company will continue to mentor and advise a select few MDIs and CDFIs to encourage them to reach success.
“I am heartened to see JPMorgan’s specific, measurable commitments that we believe will address decades of systemic racism toward Black communities – and will bolster the well-being of families across the country, as well as our collective economy,” said Marc Morial, president of the National Urban League, in a statement shared by CNBC.
JPMorgan Chase is holding itself accountable for all these new commitments, and customers are expected to do the same to see to it that they use every possible resource to extend its impact on America’s financial future.
For more information on JPMorgan Chase’s latest initiative, click here.