Getting Management's Support for CRA Programs

The biggest reason your senior management doesn't provide adequate support for your CRA program is probably because they see CRA as "just another costly compliance program." The reason they see it that way is because you might also regard CRA as another "cost center." The key to getting proper support is to recognize and show your management that CRA is different from most compliance regulations because it expects your bank to be good at what it is supposed to be good at - making loans in your community! Making lots of good loans is what makes a bank profitable. Show your management that CRA performance evaluations are driven by performance context, in particular by comparison to the loan market data for your community. Knowing your market rank, market share and how you compare to other lenders is the key to having a strong self-assessment program, but it is also the key to analyzing your market and recognizing lending opportunities. Good CRA performance analysis is based on good market analysis, which can help a bank improve its market rank and market share. Start talking to your management in those terms and you just might see a change in attitude toward your CRA program!