Many banks mark off neighborhoods they consider high risk for loans, that is, where property values are low and liable to drop even further. these neighborhoods typically have low property values and predominantly minority populations. thus, it is difficult for many minorities to obtain mortgages or home improvement loans. which kind of racism is this?

institutional racism

Explanation:

This is a type of racism which isn't based on an individual choice to be racist towards another race but it is a racism that is created by an institution to segregate a particular group of people by using a particular system which may not be seen directly as a form of racism.

Such as using a real estate market by setting limitations that will prohibit a certain race from entering a certain place or area.

Or even government setting rules that may make it hard for another race to access certain things.

In this case the financial institution has been set In a way that the minority group can't have access to home improvement loans.