Survey Finds CRA Investments Key to CDFIs
CHICAGO - A new study conducted by the Chicago based Woodstock Institute has found that financial institutions subject to the Community Reinvestment Act provided $847 million in capital to community development financial institutions as of the year 2000. The sum represents 15% of the total assets the 379 surveyed CDFIs and community development loan funds received. Community development activists argue that CDFIs, which include some community development credit unions, are key to economic development in economically depressed areas. The Woodstock Institute argued that the banks' donations to the CDFIs show that the community investment test in the CRA regulations should be retained. Some banks have requested federal regulators do away with the community investment tests and the regulators have begun to consider the idea, the Institute said.