Federal Reserve Board Chairman Alan Greenspan said banks should implement the revised Community Reinvestment Act rules as part of their overall business plans.

"I think this is crucial," he said. "If CRA is perceived by banks as a tax or credit allocation, it will fail in the long run."

Mr. Greenspan, speaking Wednesday at the Social Compact's annual luncheon honoring banks that develop innovative reinvestment programs, said community reinvestment plans must be well planned and thoughtfully implemented.

"Banks should not try to throw money at a problem or just write the check," he said. "That's not to anyone's advantage. Banks are not philanthropic institutions."

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