Community Reinvestment Act Flashcards
1
Q
Why was CRA enacted
A
Response to allegations that financial institutions were redlining in inner cities
2
Q
What does CRA not prohibit
A
Any activity
Nor does it attempt to allocate granting of credit
3
Q
What are the 4 different performance tests?
A
1) Lending, Investment and service tests
2) community development test - wholesale or limited purpose banks
3) small bank and intermediate small bank performance standards
4) strategic plan
4
Q
CRA Rating System
A
Outstanding
Satisfactory
Needs to Improve
Low satisfactory
