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Bank Performance and the Community Reinvestment Act (CRA) of 1977

JOURNAL OF BUSINESS AND ECONOMIC PERSPECTIVES, VOL. 22, SPRING/SUMMER 1996

Posted: 15 Mar 1999  

John Guardino

affiliation not provided to SSRN

Theodore Thome

affiliation not provided to SSRN

Stephen F. Borde

University of Central Florida - College of Business Administration

Jane M. Johnson

affiliation not provided to SSRN

Abstract

This study is designed to examine the effect of the CRA on the financial performance of 60 banks. For this sample of banks, performance measures such as return on assets (ROA), return on equity (ROE), salary expense ratios improve significantly in the five year period after the passage of the CRA. Furthermore, smaller banks benefitted more than bigger banks. An important implication is that banks may be able to improve their performance by penetration of lending markets in disadvantaged neighborhoods, as required by the CRA.

Notes: This is a description of the paper and is not the actual abstract.

JEL Classification: G00, G20, G21, G28, G29

Suggested Citation

Guardino, John and Thome, Theodore and Borde, Stephen F. and Johnson, Jane M., Bank Performance and the Community Reinvestment Act (CRA) of 1977. JOURNAL OF BUSINESS AND ECONOMIC PERSPECTIVES, VOL. 22, SPRING/SUMMER 1996. Available at SSRN: https://ssrn.com/abstract=151013

John Guardino

affiliation not provided to SSRN

Theodore Thome

affiliation not provided to SSRN

Stephen F. Borde (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States
407-823-2977 (Phone)
407-823-6676 (Fax)

Jane M. Johnson

affiliation not provided to SSRN

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