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Talking Points
W. Lee Hoskir¡s
t Act Seminar
CRA TS NOT ONLY TIIE I.AW BUT ALgO A CO TSI'MR. XSSI.'E TIIAT CICNITINT.'ES
TOGAINMOMENTT.'M
o
Last year, as part
amerided to fequ
and examination
o
Drives by consumer groups have gained interest and attention over the last
decade, á trend that iÉ exfected to-continue.
Mortgage Disclosure Act was
community investment records
ROLESPI-AYÐ BY STTPERVXSORS - LET IVÍARKET PI-AYA ROILE
o
uniform inter-agency guidelines for assigning ratings; prepare consistent
and understandablõ eváhiations; and, ensuré public acðess--- Supervision and
Set
Regulation.
o
Facilitate information and educational assistance -- Community Affairs.
BAI\II(S MT'ST ADDRESS CRA FROM A SIRATEGIC STAI{DPOINT
o
o
o
CRA must be considered a risk to shareholders.
Market will increasingly factor in CI{A compliance to share value.
Big depositors, such as city and state governments and unions, \ay pull money
frõm institutions with poór CRA ratiñgs (Cincin¡rati is an examplef.
Failure to comp
Prevented C
Delayed
Heldup
ansion game.
institutìon.
National Bank.
rn Corp. and Sovran
Financia
o
More scrutiny by the media.
a
Flowever, also are benefi
Know markets better (l
edge to address consur
Geherate new business
Ways in which the co
thelong run.
institution on the leading
oducts).
treach programs.
benefit thõ institution in
-2-
FORIVÍAL STRUCTT'RE AND PROCESSES OFBAÀIKMT'ST STJPPORT EFFORTS
o
o
o
Devote appropriate resources.
Incorporate CRA into strategic plaru and business plans so that it filters down
into cbrporate culture, attittídes-, policies, operatioris, etc.
More than just documentation, provide a feedback loop in organization to
monitor progress.
MYTTXSOFCRA
and provides a means of extortion by
g loan approval and denial.
no means of pressure.
oy
ans.
o Myth
-- In
ac
ble.
und that the most profitable 4D banks have most
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