Journal Article

Leveraging opportunities to promote community reinvestment


Abstract: The Community Reinvestment Act (CRA) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The CRA performance impacts banks and the communities they serve. CRA requirements are embedded in the chartering of financial institutions; and CRA performance ratings are considered in the approval, denial, or conditioning of applications for such activities as branching, consolidation, or acquisitions. Therefore, CRA provides a powerful incentive for lenders to invest in distressed neighborhoods.

Keywords: Leveraged buyouts; Community Reinvestment Act of 1977;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Profitwise

Publication Date: 2011

Issue: Sep

Pages: 7-13