WASHINGTON (CN) - Banks may include low-cost educational loans made to low-income borrowers in records evaluated regarding meeting community credit needs, according to new guidelines released by the financial agencies responsible for implementing the Community Reinvestment Act.
The act requires federal banking and thrift agencies to assess the record of institutions insured by the Federal Deposit Insurance Corporation, to see that they are meeting community credit needs, before they will be allowed to open new branches or subsidiaries.
Along with educational loans, the agencies may consider capital investment, loan participation and other activities made by non-minority owned and male-owned financial institutions in cooperation with minority- and women-owned financial institutions and low-income credit unions as a factor when assessing an institution's Community Reinvestment Act record.
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