A US government body created to restore confidence of the public in the country’s banking system feels that Indian lender State Bank of India’s Chicago unit has to improve to meet the local credit needs. The Federal Deposit Insurance Corporation (FDIC) has concluded that SBI’s Chicago branch needs to improve its compliance with Community Reinvestment Act.
The Act is aimed at encouraging insured banks and thrifts to meet local credit needs, including those of low and moderate income neighbourhoods. Moreover, the activities should be consistent with safe and sound operations.