New Brochure Provides Guidance on Community Reinvestment

Financial institutions in the Fourth District and around the country have been pursuing a growing number of options to help meet the credit needs of minority and low-income communities. In particular, many DFIs have been forming or investing in Community Development Corporations (CDCs) as a way of channeling community development financing to individuals and neighborhoods.

To help the process of community investment, the Federal Reserve's Board of Governors has recently published a brochure with information for state member banks of the Federal Reserve System and bank holding companies about establishing CDCs, and other uses of equity investments for community development. Entitled Community Development Investments: A Guide for State Member Banks and Bank Holding Companies, the brochure covers:

Federal Reserve policies and guidelines governing bank and bank holding company CDCs and equity investments.

· Issues that banks and bank holding companies should address when considering investments for community development purposes.

· The notice or approval process.

· Regulatory treatment of community development investments.

For a copy of the brochure, contact Laura Kyzour in the Corporate Communications and Community Affairs Department at the Federal Reserve Bank of Cleveland, (216) 579-2846.

Other articles in this issue:

Meeting Provides Update on Cleveland Mortgage Project

Which Neighborhoods Should Get Mortgage Assistance?

Community Development Banks Effectively Channel Aid

Mobile Banking Center Serves Cincinnati Neighborhoods

"Partners" Software Helps Determine Loan Eligibility

Classes in Russian Help Immigrants Learn the Basics of Banking

Examiners Being Trained in New CRA Rules

Community Reinvestment Forum Table of Contents--all issues