Banking Department

Community Reinvestment Act: Regulation of Bank Compliance (Follow-Up Review)

Under the Community Reinvestment Act, banks are encouraged to help meet the credit needs of their local communities. The Act is intended to prevent the practice of "redlining," in which banks do not approve loans to residents and businesses located in low and moderate-income communities. In our prior audit report 95-S-123, we examined the practices used by the Banking Department in monitoring compliance with the Act and found that these practices could be strengthened. In our follow-up report, we found that our recommendations for improvement have been fully implemented.

For a complete copy of Report 99-F-27 click here.