CRA Strategic Plan

B

The Community Reinvestment Act (CRA) requires banks to help meet the credit needs of the communities in which they operate, particularly in low- and moderate-income areas. The banks must have a CRA strategic plan to guide their efforts in meeting these obligations.

Based on the given options, the correct answer is (B) It must have measurable goals.

Here's a more detailed explanation of each option:

A. It must be limited to a one-year term: This statement is not entirely accurate. The CRA requires a strategic plan, but it does not specify the length of the plan. The plan may cover a longer period than one year, but the bank must update it at least once every three years to remain current.

B. It must have measurable goals: This statement is correct. A CRA strategic plan must include measurable goals that the bank can use to assess its progress in meeting its CRA obligations. These goals should be specific, measurable, attainable, relevant, and time-bound (SMART).

C. Affiliates must have their own plans: This statement is not entirely accurate. Affiliates may have their own CRA strategic plans, but they are not required to do so. The bank is responsible for ensuring that its affiliates' activities are consistent with the bank's overall CRA strategic plan.

D. Even if the bank has multiple assessment areas, it must have one strategic plan: This statement is not entirely accurate. If a bank has multiple assessment areas, it may have one CRA strategic plan that covers all of them, or it may have separate plans for each assessment area. The important thing is that the plan(s) must cover all of the bank's CRA obligations in each assessment area.

In summary, a bank's CRA strategic plan must have measurable goals that the bank can use to assess its progress in meeting its CRA obligations. The plan may cover a longer period than one year, and affiliates may have their own plans, but the bank is responsible for ensuring that all activities are consistent with the bank's overall CRA strategic plan.