This preview shows page 1. Sign up to view the full content.
Unformatted text preview: nation on the basis of age, race, sex, or
income. Since 1990, depository institutions have reported to their chief federal regulator on a standardized form the reasons why credit was granted or denied. To get some
idea of the information production cost of regulatory compliance in this area, the Federal Financial Institutions Examination Council (FFIEC) processes information on as
many as 6 million mortgage transactions from over 8,300 institutions each quarter.
(The council is a federal supervisory body comprising the members of the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of
the Currency.17 Many analysts believe that community and consumer protection laws
16 In the United States, bank reserves held with the central bank (the Federal Reserve or the Fed) are noninterest
bearing. In some other countries, interest is paid on bank reserves, thereby lowering the “regulatory tax” effect.
The FFIEC also publishes aggregate statistics and analysis of CRA...
View Full Document
This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09