In short, redlining forced blacks into particular areas and then starved those areas of affordable capital.
also red-line, "mark in red ink," 1820, from red (adj.1) + line (v.). Specific sense of "deny loans to certain neighborhoods based on ethnicity" is from 1973, on notion of lines drawn on maps. Used earlier in reference to insurance company practices (1961) and in World War II military slang in reference to a red line drawn through a soldier's name for some infraction, thus denying his pay. Related: Redlined; redlining.