Which of the following is NOT a requirement of CRA?
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A. B. C. D.C
The Community Reinvestment Act (CRA) is a federal law enacted in 1977 that requires banks and other financial institutions to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices. The CRA has four basic requirements, which are:
A. To delineate the bank's assessment area(s): Banks are required to define and delineate the geographic areas they serve, such as cities, towns, or neighborhoods, and assess their performance in meeting the credit needs of those areas.
B. To collect loan data: Banks are required to collect and maintain data on their lending activity, including the number and amount of loans made in their assessment areas, the distribution of loans among different income levels, and the types of loans made.
C. To approve the bank's CRA statement at an annual board meeting: Banks are required to adopt and make available to the public a written CRA statement that describes their efforts to meet the credit needs of their assessment areas. The statement must be approved by the bank's board of directors at an annual meeting.
D. To report small business loan data: Banks with assets of $1 billion or more are required to report data on their small business lending activity, including the number and amount of loans made to small businesses, the distribution of loans among different income levels, and the types of loans made.
Therefore, the answer to the question is option C, "To approve the bank's CRA statement at an annual board meeting" is not a requirement of CRA. While banks are required to adopt and make available to the public a written CRA statement, there is no specific requirement for the statement to be approved at an annual board meeting. However, the statement must accurately reflect the bank's CRA activities and be updated at least annually.