CRA Investment Test Needs to be Rethought, Banks Say
July 2, 2001
As the Federal Reserve Board gears up for next year’s review of the Community Reinvestment Act, some industry factions are pushing hard for changes to the investment test – changes that could potentially make bank CRA investments more profitable. Implemented in the early 1990s, the test is designed to create investment in projects and institutions critical to the long-term health of neighborhoods. Proponents say that it is has been successful in raising homeownership rates