Which regulation requires out-of-state-banks that acquire local banks to commit to continued lending in the area and not use the acquired banks simply as deposit gatherers?
A) Equal Credit Opportunity Act
B) National Bank Act
C) Federal Lending Act
D) Fair Credit Reporting Act
E) Community Reinvestment Act

Question

Quizplus · Accepted Answer

The Community Reinvestment Act (CRA) requires out-of-state banks that acquire local banks to make a commitment to lend in the area and not use the acquired banks solely as deposit gatherers. The CRA was designed to encourage banks to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods. The other options listed do not specifically address this requirement for out-of-state bank acquisitions.

Which Regulation Requires Out-Of-State-Banks That Acquire Local Banks to Commit