What is the Community Reinvestment Modernization Act?
The Community Reinvestment Modernization Act is an important piece of North Carolina banking law that was designed to improve access to financial services for low- and moderate-income communities throughout the state. The Act was signed into law in 2019, and it includes several major changes to how banks interact with customers in disadvantaged areas. The first major change the Community Reinvestment Modernization Act implemented is the Community Reinvestment Act Modernization Credit. This credit enables banks to receive tax credits for investments in targeted lower-income areas. This is meant to provide an incentive to banks to invest in neighborhoods that have traditionally lacked access to banking services, such as financial education programs and loan products. The Act also includes the establishment of a Community Reinvestment Advisory Council. This council is responsible for hearing complaints from the public about how banks are fulfilling their obligation to meet the needs of lower-income communities. The council is also responsible for helping the North Carolina Commissioner of Banks ensure compliance with the Community Reinvestment Modernization Act. Finally, the Act allows banks to offer new financial products and services that were specifically designed for lower-income communities. Examples of these products include lower-cost banking accounts, access to insurance products, and fee-free access to financial planning tools. Overall, the Community Reinvestment Modernization Act is an important piece of North Carolina banking law that has improved access to financial services for underprivileged communities throughout the state.
Related FAQs
What is the Expedited Funds Availability Act?What is the Payment Card Industry Data Security Standard?
What is the Bank Holding Company Act?
What is usury?
What is the Right to Financial Privacy Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the Fair Debt Collection Practices Act?
What is banking law?
What is the Fair Debt Collection Practices Act?
What legal issues do banks face?
Related Blog Posts
What is Banking Law? – Understanding the Basics of the Financial System Legal Framework - July 31, 2023New Developments in Banking Regulations: What You Need to Know - August 7, 2023
Understanding Regulatory Compliance for Banking Institutions - August 14, 2023
Exploring Current Trends in Banking Law - August 21, 2023
Banking Litigation: What You Need to Know - August 28, 2023