Refusal by banks to make loans or by insurance companies to issue policies to individuals or firms in particular areas. This was justified by banks as the result of bad experience with loans or policies in these areas. The practice was criticized as being a form of discrimination against ethnic groups concentrated in such areas. In the US redlining based on race, religion, gender, family status, disability, or ethnic origin was prohibited by the Fair Housing Act of 1968.
Subjects: Earth Sciences and Geography — Economics.