Cdbg Case Essay

5028 Words Nov 9th, 2015 21 Pages
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The CDBG Case
Management 585

Professor Stephanie Pane

Shavon Adams
September 29, 2015

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Introduction
The CDBG Case profiles the CRA department of BOK Financial Corporation, a struggling community development department that undergoes new leadership in an effort to improve overall performance. BOK’s newly appointed Senior EVP, Steve Bradshaw saw the need to make serious changes within the department due to barely satisfactory performance reviews, inefficient procedures and failure to serve the neighboring community. Although the
CRA department, named after the Community Reinvestment Act, had received satisfactory ratings in their prior year performance evaluations, the complacency of the department threatened the
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Paula specifically had an extensive banking background and had worked in an organization that worked on community development projects. The onboarding of new managers was exactly what the department needed to make serious changes. Newer managers bring diverse skills, fresh perspectives, and a non-biased view which is an important factor needed to initiate changes in weak organizations.

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Another major issue that threatened the future of BOK Corporation as a whole was its lack of effort in serving the community. According to Antonakes (2001), the Community
Reinvestment Act is a federal regulation founded in 1977 designed to encourage banking and lending institutions to increase credit lending opportunities in lower income neighborhoods. The act was designed specifically in order to eliminate discriminatory lending practices such as redlining (p.2). Antonakes (2001) states “the law requires all banks to delineate an assessment area which they will concentrate their lending activities” (p.1). Lending institutions and banks are heavily rated and evaluated regarding the effectiveness of their lending activities in these specific neighborhoods. They are required to take CRA exams ever so often to make sure they are in compliance with lending standards in their designated area. Failure to comply with federal

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