It is not surprising that the banking industry cheered when the agencies adopted the new Community Reinvestment Act regulations. What is surprising, though, is that most of the industry really doesn't have anything to cheer about.
Everyone knows that financial institutions are weary from overly burdensome and costly CRA requirements. A national survey of commercial banks and thrifts, conducted earlier this year by KPMG's financial services regulatory advisory practice, found that 96% of respondents identify CRA as the No. 1 area needing regulatory relief.