Why do banks complain so much about the Community Reinvestment Act?

Expert Solution

Answer:

Community Reinvestment Act: Community Reinvestment Act is an act which necessitates that the government regulators of banks and frugalities support those organizations to assist them in meeting the credit requirements of the local communities in which they are sanctioned.

The reasons banks complain about Community Reinvestment Act:

Banks have been criticized that they are reviewed too instinctively and don't regularly have the foggiest idea what sorts of activities would meet all requirements for credit according to the law. The application would explain what might fit the bill for CRA credit, grow the likely choices and conceivably give banks greater adaptability around what parts of the nation the loaning would be done in. Banks would likewise be urged to make credits to lower income borrowers dependent on where their clients are instead of where the bank has physical branches.

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