ACT DEPOSIT PROGRAM A Simple Solution for Improving Your Bank’s CRA Rating By Diane Ellis, Senior Managing Director, IntraFi For many bank executives, meeting the Community Reinvestment Act (CRA) requirements can feel like solving an intricate puzzle. But a new initiative offers a safe, straightforward solution to one key aspect of CRA compliance. Launched this past year by the Community Development Bankers Association (CDBA) and the National Bankers Association (NBA), the Advancing Communities TogetherSM (ACT) Deposit Program provides banks with a secure and efficient way to fulfill their CRA obligations. By placing deposits into Community Development Financial Institutions (CDFIs) or Minority Depository Institutions (MDIs), your bank can earn credit toward the CRA’s community development and investment tests. “The ACT Deposit Program is a promising new tool for community and regional banks to earn CRA credit,” says Brian Blake, CDBA’s chief public policy officer and a former bank CRA officer, “ACT excels at meeting both the spirit and the letter of the CRA, and I believe it is very competitive compared with more complex, costly or time-consuming alternatives.” How Does the ACT Deposit Program Work? The ACT Deposit Program uses IntraFi’s ICS®, or IntraFi Cash Service®, so your bank’s deposit is eligible for millions of dollars in aggregate FDIC insurance at network banks. The minimum deposit under the program is $1 million for banks with $10 billion or less in assets and $5 million for larger banks. And the deposits earn interest. 14
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