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BBVA Compass will likely face restrictions on M&A and branching after issues turned up in its recent CRA exam. Though a CRA rating downgrade is bad, some believe the foreign-owned bank is better off than banks that have had compliance issues arise after submitting a merger application.
August 25 -
Thanks to the rise of online and mobile banking, some banks now have significant customer bases in areas where they have little branch presence. The solution is to carve out a category of virtual banks that have tailored CRA responsibilities and examination standards.
November 3 -
The Community Reinvestment Act is often used as a tool to address a broad range of social problems. But the laws expanded purpose may distract banks from their primary mission of direct lending to low- and moderate-income communities.
October 21
BBVA Compass is planning to direct $11 billion to lower-income communities.
The $76 billion-asset company's pledge includes $6.2 billion to small businesses and $1.8 billion in community development loans.
The commitment by U.S. arm of Banco Bilbao Vizcaya Argentaria in Spain comes three months after it disclosed in a regulatory filing that it
BBVA Compass also plans to use $2.1 billion to offer mortgages in low- to moderate-income neighborhoods. The bank will also emphasize community health clinics and other medical facility growth in low-income areas.
After acknowledging its poor CRA rating, BBVA hired Chris McGillis, once SunTrust Bank's head of community reinvestment, to become its CRA program administration director.
"We have made significant enhancements to our CRA program in terms of staffing, governance and overall strategy," Reymundo Ocañas, BBVA Compass' director of corporate responsibility and reputation, said in the recent release.
BBVA's community reinvestment team met last week in Washington with several low-income housing and community development activist groups to discuss better community involvement.
