Citigroup to set aside over $1 billion to combat racial wealth gap

Citigroup Inc said on Wednesday it would set aside more than $1 billion to support initiatives that help close the racial wealth gap and increase economic mobility for people of color.

The Wall Street bank said the three-year initiative will include programs that would provide greater access to banking and credit in communities of color, increase investment in Black-owned businesses and expand homeownership among Black Americans.

“We are in the midst of a national reckoning on race and words are not enough,” said Chief Financial Officer Mark Mason. “We need awareness, education, and action that drive results.”

Mason is one of the industry’s most senior Black executives.

Citi’s statement comes amid a broader re-think of racism in the United States in recent months, after police killings of Black Americans including George Floyd, who died on May 25 in Minneapolis.

Many US companies have issued statements of solidarity with the Black community, promised to increase diversity among employees and collectively pledged nearly $2 billion to advance racial justice and equity.

In June, Bank Of America BAC.N decided to pledge $1 billion to address economic and racial inequality.

Reuters reported on Tuesday Wells Fargo & Co WFC.N Chief Executive Charles Scharf exasperated some Black employees in a Zoom meeting this summer when he reiterated the bank had trouble reaching diversity goals because there was not enough qualified minority talent.