The Community Reinvestment Act (CRA) encourages lenders to meet the credit needs within the communities they serve, including those designated as low- and moderate-income. Larger banks often use innovative strategies to meet community needs under the definition of community development. Because such efforts can be time-consuming and complex, CRA Officers must be able to interpret how the CRA may apply to countless everyday banking scenarios.
This is one of a six-part quiz series designed to test your knowledge on the CRA, the goal of which is to simplify some of the complexities inherent in this nearly 50-year-old law.
Scenario
A “Large Bank” (as defined by CRA) has set up a Special Purpose Credit Program (SPCP) to target minority-owned businesses in its assessment area.
