Archive for February 24, 2011
The American Banker published the article Harsher CRA Ratings Threaten Bank Mergers & Acquisitions on February 14, 2011. If you haven’t already read it, please do so. The article leaves the impression that CRA examinations are getting harder and banks are being expected to do more to earn a Satisfactory rating, and even more to earn an Outstanding rating.
The context of the article is mergers and acquisitions. As you know, a bank with less than a Satisfactory rating is not allowed to acquire other banks, which is something some strong and growing banks are interested in doing right now. One strategy banks may employ to avoid the risk of falling below a Satisfactory rating in this environment will be to over-achieve in their CRA efforts. At the same time, bankers are telling us that quality CRA community development loans and investments are becoming more difficult to find. The Association’s endorsed partnership with Senior Housing Crime Prevention Foundation is a perfect solution in this circumstance, because the Senior Crimestoppers Program and/or the Veterans Initiative are easy to do, completely turn-key, and risk-free…a safe, easy and proven solution for your CRA program.
For more information on the Association’s endorsement, please contact Annie Coldstream at the Association office at (617) 502-3816 or David Stone, Consultant at Senior Housing Crime Prevention Foundation, Inc., at (603) 387-7045.
Please contact me with any questions or comments.
Peter T. Blanchard
Executive Director, Education Management and Member Services