The Federal Reserve Board has advised limited-purpose credit card banks that they can meet their Community Reinvestment Act obligations by providing community development services and investments.

In a Sept. 6 letter to the Association for Financial Services Holding Companies, Fed Assistant General Counsel Robert de V. Frierson wrote that these institutions may invest in community development companies, provided they don't control more than 5% of the voting stock. They may also lend senior executives to community development groups and make grants to housing activists, he said.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.