Description

The Community Reinvestment Act
requires banks to “meet the need for
credit services” within their market; to act as
financial intermediaries and lend money to the
communities they serve.

The major source of income for banks is the
interest revenue generated by the loans they
make, and CRA gives banks the responsibility
of marketing loan services to all segments of the
community. Not only is this good banking, it is
profitable banking.

So why do many bankers have a negative
perception of CRA?