by Lydia Hu
Regions Bank, Birmingham’s largest private employer, cannot apply to open or buy new bank branches. This limit on growth follows a downgrading in its Community Reinvestment Act rating.
“It requires banks that have the benefit of FDIC insurance for deposits, to affirmatively serve the credit needs of people in their area, including specifically the needs of low and moderate income people,” said Dory Rand, President of Woodstock Institute.
The bank currently operates 1,627 bank branches across the southeast. The downgrading will not delay the opening of previously approved bank locations.