Community Reinvestment Act (CRA) 


The CRA’s implementing regulation (12 CFR 25, et seq.) requires federal financial institution regulators to assess a bank’s record of helping to meet the credit needs of its entire community, including low and moderate income neighborhoods, consistent with safe and sound operations. It also mandates that the agency consider that record in its evaluation of a bank’s application for new branches or relocation of an existing branch, bank mergers and consolidations, and other corporate activities.

The federal financial institution regulators are: Office of the Comptroller of the Currency; Board of Governors of the Federal Reserve System; and Federal Deposit Insurance Corporation.

The law provides a framework for depository institutions and community organizations to work together to promote the availability of credit and other banking services to underserved communities. Under its impetus, banks and thrifts have opened new branches, provided expanded services, adopted more flexible credit underwriting standards, and made substantial commitments to state and local governments or community development organizations to increase lending to underserved segments of local economies and populations

BCM can provide fixed income debt securities that are targeted geographically and considered CRA positive under the Community Reinvestment Act of 1977. These investments may provide financial institutions investment test or similar credit under the CRA.

Banes Capital Group, LLC
6410 Poplar Ave., Suite 320 - Memphis, TN 38119

901-261-5900 Main
800-664-5635 Toll Free
901-261-5999 Fax