NEW YORK (1010 WINS) -- Over the last 20 years, the US economy lost out on $16 trillion in growth due to discriminatory policies in wage growth, education access, homeownership, and lending to minority-owned businesses, according to New York-based megabank Citigroup.
The bank claims that $13 trillion worth of losses on American banks’ comes from an unwillingness to lend to black-owned businesses.
Wage inequality cost banks $2.7 trillion.
Over the next five years, about $5 trillion could be added to US economic growth if these inequalities are addressed, the study found.
"These gaps exist based on systemic issues that caused and continue to cause discrimination against Blacks over the years," read a Citi statement. "The gaps in many cases remain wide 60 years after the Civil Rights Movement."
Additionally, the report found that the gap between white and minority homeownership widened even as homeownership in the US has risen since 1980.
The bank, on Wednesday, announced that it would be spending $1 billion as part of its "Action for Racial Equity" initiative. The money will be spent on a number of strategic initiatives, including a $350 million commitment to black-owned businesses.