The Federal Deposit Insurance Corporation (FDIC) has produced a resource guide, Strategies for Community Banks to Develop Partnerships with Community Development Financial Institutions, to inform institutions of strategies to meet community credit and development needs and receive consideration under the Community Reinvestment Act (CRA) through collaboration with community development financial institutions (CDFIs). CDFIs are specialized financial institutions that provide products and services to underserved markets. Loans to and investments in qualifying CDFIs may help banks meet their CRA obligations.
The guide contains information to help community banks identify and evaluate opportunities to collaborate with CDFIs, and describes the key characteristics of CDFIs and the types of investments that can support them. It also discusses steps to consider when assessing bank/CDFI partnerships and how these activities may enhance CRA performance.
The guide can be downloaded from the FDIC’s website.