Under the Community Reinvestment Act, banks that cannot show that they have complied with the CRA requirements may be prohibited from merging, branching, or engaging in other new areas of business.

Question

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The Community Reinvestment Act (CRA) requires banks to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Failure to comply with CRA requirements can result in regulatory actions, including restrictions on expanding or merging operations.

Under the Community Reinvestment Act, Banks That Cannot Show That