Community Reinvestment Act Essay Example | Topics and Well Written Essays - 1250 words

Community Reinvestment Act - Essay Example Bylsma (1997) included comments from interagency letter that was forwarded to him this implication: "Examiners will presume that an activity revitalizes or stabilizes a low- or moderate-income geography if the activity has been approved by the governing board of an Although the four financial regulatory agencies neither endorse nor certify particular lending or investment products, this implication keeps businesses that are applying for credit accountable to the banking institutions. Banking institutions carry a burden too and are held accountable to the community and said geography. Banks must help meet the credit needs of their communities. There are many federal regulations that the banking institutions must meet. These include, but are definitely performance tests, standards, and ratings; lending tests; investment tests; strategic planning; data collection, reporting, and disclosure; content and availability for public file, etc. Having stated this, banking institutions are being held accountable to their communities. I do not think the Community Reinvestment Act is taken seriously because there were much planning and work involved. The designation and duties of Governors of the Federal Reserve System, the Officer of the Comptroller of Currency, Office of Thrift Supervisors, and Federal Deposit Insurance Corporation (just to name of few) comprise of so much detail and responsibilities.