The Thrift Industry and the Community Reinvestment Act: Assessing the Cost of Social Responsibility

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Donald F. Vitaliano; Gregory Stella;
  • Subject:
    • jel: jel:G21 | jel:M14 | jel:G28

A stochastic frontier cost function indicates that the annual cost of complying with the anti-redlining Community Reinvestment Act (CRA) is $171,000 per thrift institution, roughly 2.3 percent of variable costs. But compliance cost is significantly less than the estimat... View more
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