Research On The Community Services Obligations Of Financial Institution-Centering On Car

The Community Reinvestment Act (CRA) of the United Station is the only one which endues with the community services obligations to financial institution. The legislative background of that is:the invalid market and racial discrimination leaded to lone rejected in redlining, what severely affected the credit requirements of low- and moderate-income communities and borrowers. The Community Reinvestment Act of the United Station regulated financial institutions have continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered, especially for low-and moderate-income communities. The Community Reinvestment Act has been carried out for more than 30 years; it has increased the lending ratio in low- and moderate-income communities; has increased the mobility of the community credit; has effectively improved financial exclusion in the United Station. Nowadays, all the countries in the world are committed to tackle financial exclusion and provide financial inclusion. For instant the United Kingdom and Australia deal with financial exclusion with market-orientated. Differencing from mandatory legislation in the United Station, their governments act as provider and guider which cooperate with financial institutions and help industry association to make their own voluntary rules. But all the measures have little effect.Our country now have serious financial exclusion problem, it's severity is on the top in developing countries, low- and moderate-income communities have difficulties in lack of credit and financial services using. Our country takes many measures to try to resolve financial exclusion, but these measures are only policies, so they are useless. The author believes, we should reference community reinvestment act in the United Station:gives the community services obligations to financial institution. By using the theories of 'The legitimacy of the mandatory government intervention' and 'Corporate social responsibility' establish the community services obligations to financial institution in obligation subject, obligation range, community defined, legislation model, supervision and assessment, performance model.