| Title: |
The
Community Reinvestment Act After Financial Modernization: A Final
Report |
| Author(s): |
Robert E. Litan, Nicolas P. Retsinas,
Eric S. Belsky, Gary Fauth, Maureen Kennedy and Paul Leonard |
| Organization: |
Treasury Department
January 2001 |
| Methodology: |
This is the final report from the
Treasury Department measuring the impact of the Gramm-Leach-Bliley
Act on the CRA. A summary of the baseline report precedes this synopsis.
The report is based on interviews with experts in financial institutions,
community and civic organizations and local government leaders, and
analysis of U.S. Census data, U.S. Department of Labor unemployment
data and National Association of Homebuilders data. These findings
are considered preliminary since "quantitative data on the impact
of the Financial Modernization Act (FMA) is not likely to be available
for several more years." |
| Primary conclusions: |
Suggests that the
FMA will not have a significant effect on the delivery of services
under the CRA. |
| The requirement that a financial
holding company's subsidiary banks have a "Satisfactory"
CRA rating before it can expand into new, non banking activities will
cause at least some institutions to raise their performance. |
| The Sunshine provision may raise
compliance costs for regulated institutions. |
| The researchers estimate it will
take five years before the effects of the FMA on the financial services
industry are quantifiable. |
| This report does not recommend
administrative or legislative changes in regard to CRA covered institutions
but recommends a follow-up assessment in five years (2006). |
| URL: |
http://www.treas.gov/press/releases/reports/finalrpt.pdf |
| Bibliography: |
Yes |
| Number of pages: |
88 |
