Federal regulators to examine Santander Bank’s practices under CRA

THE OFFICE OF THE COMPTROLLER of the Currency will examine how well Santander Bank is meeting the needs of low- and moderate-income neighborhoods as part of its regular fourth-quarter schedule of Community Reinvestment Act evaluations. / BLOOMBERG FILE PHOTO/ANGEL NAVARRETE
THE OFFICE OF THE COMPTROLLER of the Currency will examine how well Santander Bank is meeting the needs of low- and moderate-income neighborhoods as part of its regular fourth-quarter schedule of Community Reinvestment Act evaluations. / BLOOMBERG FILE PHOTO/ANGEL NAVARRETE

BOSTON – Federal regulators are scheduled to examine how well Santander Bank is meeting the needs of low- and moderate-income neighborhoods, an area where the bank has struggled in the past.

The Office of the Comptroller of the Currency last week announced its regular fourth-quarter schedule of Community Reinvestment Act evaluations, which includes the Boston-based bank.

“The Community Reinvestment Act of 1997 provides a framework for financial institutions, state and local governments and community organizations to jointly promote banking services to all members of the community,” according to the OCC.

The CRA – among other things – prohibits redlining, a practice of denying or increasing the cost of banking to neighborhoods often comprising racial minorities. Santander, owned by Spain-based Banco Santander SA, has been suspected of such practices in the past.

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Providence in 2014 accused the bank of discriminatory lending, specifically in poor, black and Hispanic neighborhoods.

The city ultimately dropped the lawsuit in exchange for the bank agreeing to make more mortgages and give grants to city organizations. Santander has repeatedly rejected the accusations.

The OCC last year assessed the bank under the CRA and gave it poor marks, saying it “needs to improve.”

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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