CRA strategic plan option: a bad idea gone wrong.(bank Community Reinvestment Act exams)(includes related articles on distinctions of the CRA strategic plan option and on why Citibank's strategic plan was not approved)

ABA Banking Journal, June, 1997 by Thomas, Kenneth H.

An examination of the bank Community Reinvestment Act exams resulted in an unfavorable evaluation by the banking industry. Of the 27 banks that filed strategic plans under the act, 8 withdrew their applications, one was denied, and many of those who had their plans approved spend up to a year in negotiations with regulators. Bankers are even uncomfortable discussing the subject.

In the end, the seemingly attractive option may wind up as little more than an unpleasant footnote in CRA's history

The promises at left sound almost too good to be true. They are. That conclusion is based on an evaluation of each of the 27 strategic plans for Community Reinvestment Act compliance tiled in 1996, along with all subsequent revisions and regulatory correspondence in the...

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