Interagency Q&A .12(i) – 1: In addition to meeting the definition of “community development,” community development services must also be related to the provision of financial services. What is meant by “provision of financial services”?

Compliance > Regulation BB - CRA
Q:  § __.12(i) – 1: In addition to meeting the definition of “community development” in the regulation, community development services must also be related to the provision of financial services.  What is meant by “provision of financial services”?
 
A:  Providing financial services means providing services of the type generally provided by the financial services industry.  Providing financial services often involves informing community members about how to get or use credit or otherwise providing credit services or information to the community.  For example, service on the board of directors of an organization that promotes credit availability or finances affordable housing is related to the provision of financial services.  Providing technical assistance about financial services to community-based groups, local or tribal government agencies, or intermediaries that help to meet the credit needs of low- and moderate-income individuals or small businesses and farms is also providing financial services.  By contrast, activities that do not take advantage of the employees’ financial expertise, such as neighborhood cleanups, do not involve the provision of financial services.
 
 
 
This Interagency Q&A, and others, was released in July 2016.  The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately.  They may be found here:  http://www.ffiec.gov/cra/qnadoc.htm
 

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