Community Reinvestment Act (CRA)

 

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Community Reinvestment Act (CRA)

Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations.



Community Reinvestment Act (CRA)

Similar Matches

Dividend reinvestment plan

Dividend reinvestment plan

A plan which allows private investors to reinvest cash dividends from their investments cheaply and easily back into the market, and so obtain the benefits of compounding.The Plan is managed by an administrator appointed by the company. On the dividend date, shareholders who join the plan are still paid the cash dividend, but the administrator then uses the cash to buy shares in the company on behalf of the shareholder. Any cash left over is sent to the shareholder in the normal way. Dealing commission on such purchases is usually 1%. Note that the Plan Administrator does not have to make the plan available for any and every dividend that the company pays. If it is not made available, shareholders will receive the cash dividend.


Reinvestment

Reinvestment

Use of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors.


Reinvestment effect

Reinvestment effect

The impact of a change in interest rates on the reinvestment rate.


Automatic reinvestment

Automatic reinvestment

See: Constant dollar plan.


Reinvestment risk

Reinvestment risk

The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.


Further Suggestions

Reinvestment rate


 
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