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The phrase "Institutional racism" is correct and usable in written English.
It can be used to describe systemic discrimination and inequality that is embedded within the policies and practices of institutions, often affecting marginalized groups. Example: "The report highlighted the prevalence of institutional racism within the education system, leading to disparities in academic achievement among students of different backgrounds."
Dictionary
Institutional racism
noun
A form of racial inequality resulting not from conscious discrimination, but from the cumulative effect of subconscious racism and/or from the aggregate inertial discriminatory effect of individuals within a non-diverse group favoring like-minded individuals.
Exact(60)
"Institutional racism has become a recognised term," that person said.
Institutional racism: Boston and Brooklyn.
Institutional racism trades on the privilege of not knowing.
Institutional racism is very much a source of the injustice.
It's about institutional racism.
I talk about institutional racism.
That's what institutional racism is about.
Is there institutional racism in the British Army?
We are talking about a racist state, institutional racism.
Much as institutional racism in the real world is.
But that doesn't mean institutional racism is not strong".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com