Bankers looking to close branches to cut costs must pay attention to the location of such closures — or run the risk of a Community Reinvestment Act ratings downgrade.

BBVA Compass Bancshares recently disclosed that it faces restrictions on acquisitions and branch openings after an issue turned up in its latest CRA exam. While CRA oversight may be most concerning for expansion-minded institutions like BBVA, it could also become problematic for banks looking to pare back.

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