Finance
What is the 'Community Reinvestment Act' (CRA) and how does it relate to Delaware lending?
AA law requiring all Delaware banks to reinvest profits in the community
BA federal law requiring financial institutions to serve the credit needs of all communities they serve — including low- and moderate-income neighborhoods — evaluated by regulators during bank examinations✓ Correct
CA Delaware state program providing community development loans
DA law requiring commercial banks to make home loans to all applicants regardless of credit
Explanation
The Community Reinvestment Act (CRA, 1977) requires federally regulated depository institutions to help meet the credit needs of all communities in their service area, including low- and moderate-income areas. Regulators evaluate CRA performance during bank examinations, and CRA ratings affect approval of mergers and branch applications. Delaware banks must demonstrate CRA compliance.
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