Finance

In New York, the 'Community Reinvestment Act' (CRA) rating of a bank affects:

AThe bank's ability to collect property taxes
BRegulatory approvals for mergers, acquisitions, and branch openings, incentivizing banks to serve all community members✓ Correct
CThe bank's participation in the STAR program
DThe bank's DOS licensing status

Explanation

Federal banking regulators consider a bank's CRA rating when reviewing applications for mergers, acquisitions, and branch expansions. A poor CRA rating can result in regulatory disapproval or conditions on such applications.

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