USA HISTORY

Detailed explanation-1: -The Community Reinvestment Act (CRA), enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low-and moderate-income (LMI) neighborhoods.

Detailed explanation-2: -Credit Risk Assessment (CRA) – Minimum Scores / Hurdle Rates 1. The CRA models adopted by the Bank take into account all possible factors, which go into appraising the risks, associated with a loan. These have been categorized broadly into fnancial, business, 33 industrial & management risks and are rated separately.

Detailed explanation-3: -The results of the CRA examinations are reported by ratings categories. What are the CRA ratings? b. A, C, and D are incorrect because the purpose of the CRA rating is to reflect how an institution is meeting its responsibilities to the community it serves.

Detailed explanation-4: -The Community Reinvestment Act (CRA) was. enacted in 1977 to prevent redlining. 1. and to. encourage banks and savings associations (collectively, banks) to help meet the credit needs of all segments of their communities, including low-and moderate-income neighborhoods and individuals.