federal examiners perform cra evaluations on all banks annually


Please know that if you continue to browse on our site, you agree to this use. (National Association) in their title are nationally chartered financial institutions. Accessibility & Reasonable Accommodations. This When evaluating a bank's lending activities and the borrowers it reaches, examiners analyze loans for home mortgages, small businesses, small farms, and community development (as well as consumer loans, in some cases). date that each supervisory agency updated data on this site. Stay up to date with the latest events and changes here at DoughMain Financial Literacy Foundation, Personal Financial Literacy Certification, Supporting DoughMain Financial Literacy Foundation and Our FitKit School and Community Programs Under the Community Reinvestment Act (CRA), Federal Financial Institution Examination Council (FFIEC) CRA Page. By selecting the criteria of the bank(s) you wish to obtain, you They examine the loan to Small banksthose with total assets of less than $250 million, either independent or an affiliate of a holding company with total assets of less than $1 billionare evaluated by more streamlined standards than those used for larger banks. This credit may be Community development support may take the form of community development loans, qualified investments (including grants), or community development services. Its not surprising that we receive many phone calls from groups or individuals who have heard about CRA and think that it is a program through which they can apply for funding. In addition, the bank must provide notice to its branch customers and post notice of its intent to close the branch on the same day that it submitted notice thereof to the Department. and loan associations, whether State or Federally chartered, conduct The performance context analysis, a core part of a CRA evaluation, doesnt always get the attention it deserves. The ID #, if entered, They look at information about, Investment. whether the bank uses flexible lending practices to address the credit needs of low- or moderate-income individuals or neighborhoods. Based on information provided by the bank and gathered from other sources, the Department is then required to make a finding of whether the closing would result in a "significant reduction of banking services" in the community to be affected. While the Department engages in substantial outreach to government officials, community groups and banking institutions in this context, it must be noted that we have no authority whatsoever to prohibit the closing of a bank branch. in maintaining the competitive position of the institution. When possible, the Department examines institutions simultaneously, to maximize efficiency and minimize the financial and resource burdens on the institution. Visit Help on CRA Ratings Demographic data on median income levels, distribution of household income, nature of housing stock, housing costs, and other relevant data pertaining to a banks assessment area(s); Any information about lending, investment, and service opportunities in the banks assessment area(s) maintained by the bank or obtained from community organizations; state, local, and tribal governments; economic development agencies; or other sources; The banks product offerings and business strategy as determined from data provided by the bank; Institutional capacity and constraints, including the size and financial condition of the bank, the economic climate (national, regional, and local), safety and soundness limitations, and any other factors that significantly affect the banks ability to provide lending, investments, or services in its assessment area(s); The banks past performance and the performance of similarly situated lenders; The banks public file and any written comments about the banks CRA performance submitted to the bank or the Board [of Governors of the Federal Reserve System]; and any other information deemed relevant by the Board. the total number and total dollar amount of loans; the geographic distribution of loansthat is, the proportion of the bank's total loans made within its assessment area; how these loans are distributed among low-, moderate-, middle-, and upper income locations; the characteristics of borrowershow loans are distributed to people at various income levels and to small businesses and small farms; the bank's activity in community developmenthow many and what dollar amount of loans benefit low- and moderate-income people or geographic areas?

credit needs of its assessment area or is directing its funds elsewhere. In short, it is not enough for such an 2 - indicates a Satisfactory record of helping to meet community credit needs. Advancing Careers for Low-Income Families, Center for Financial Innovation and Stability (CenFIS), Center for Quantitative Economic Research (CQER), Center for Workforce and Economic Opportunity, Community Development at the Federal Reserve, Southeastern Rental Affordability Tracker, Mortgage Analytics and Performance Dashboard, Renter Households Vulnerable to COVID-19 by Region, Better Employment and Training Strategies, Funding and Financing Workforce Development, Looking at Your Bank's CRA PerformanceThe Big Picture, Standards Used to Evaluate Your Bank's CRA Performance, What Your Bank's Public CRA File Must Show, Where You Can Find Your Bank's CRA Public File, How You Can Comment on Your Bank's CRA Performance. Michael leads our efforts to promote the economic resilience and mobility of low- to moderate-income individuals and communities across the Ninth Federal Reserve District. The Community Reinvestment Act (CRA) is a federal law enacted in 1977 that is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods,1 consistent with safe and sound banking operations.2 The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. by members of the public and should be available upon request from the assessment areas. 1 - indicates an Outstanding record of helping to meet community credit needs. We explore policy topics that are important for advancing prosperity across our region. Staff are also available to provide information and assistance to banks seeking additional lending and investment opportunities. Examiners ask a variety of questions, which may be specific to the type of organization an interviewee represents. its record of lending to borrowers of different income levels as well as businesses and farms of different sizes, the geographic distribution of its loans, and. In the end, efforts like these to improve the CRA performance context analysis will help increase local understanding of community issues, trends, and nuances and address community needs. institutions whose physical headquarters are in the the selected We provide the banking community with timely information and useful guidance. Following each examination, an examination report is written, reviewed Through its authority to administer and enforce CRA, the Department plays an active role in facilitating partnerships between banks and communities. institutions supervised by the Federal Reserve, Office of the Comptroller of Ratings Page, Maintained by the FFIEC. Office of the Comptroller of the Currency.

Exams for larger institutions usually go longer. The Department reviews not only a branch closing in low or moderate income census tracts during the examination period, but also reviews branch closings in middle and upper income tracts that are adjacent to and presumably serve low or moderate income tracts. Explore more features related to our community engagement trip to Billings: Early care market may be an economic-mobility barrier in Billings, Where the child care and energy markets meet: A conversation with Dan Carter of ExxonMobil. An institution receives favorable consideration for those activities that have a primary purpose of community development. Many community leaders have a subscription to the Departments Weekly Bulletin, which publishes all notices. that date.

or Frequently Asked Questions for more information. Examination ratings are not made public until 45-60 days after the examination On a biennial basis, New York State bank examiners conduct an evaluation, pursuant to the Community Reinvestment Act (CRA), of an institutions performance in helping to meet the credit needs of communities, including those of low or moderate income within its assessment area. The Performance Evaluation is designed to show the banks CRA rating. Therefore, it is unlikely that the ratings from any exams started within the Although institutions have considerable latitude in To find out more, please review our privacy policy. institutions to lend and invest in the areas around their offices. When evaluating a bank's investments, examiners look not only at a bank's assessment area but also at a broader statewide or regional area surrounding it.

These ratings, along with a Performance Evaluation provide the bank and the public an understanding of how well the bank is performing under CRA. ; or. In its notice, the bank must provide specific information, including, but not limited to, a statement of the reasons leading to the decision to close the branch, and a detailed map of the area served by the branch, showing the distance and direction of all remaining banks and state-licensed financial service providers. Taken together, the use of these tests strongly encourages financial how innovative or complex the investments are, how well the investments respond to credit and community development needs, and. Moderate income refers to a census tract with a median family income that is at least 50 percent and less than 80 percent of the area median income. deposit ratio and investment practices of the institution to determine

In this article, we provide an overview of the performance contexts use in the evaluation of a depository institution and discuss the categories of information that bank examiners gather for their analysis. has collected as deposits or is otherwise investing sufficiently in CRA Large banksthose with total assets of $250 million or more or that are affiliates of holding companies with assets of $1 billion or moreare evaluated in three areas: lending, investment, and service. All state-chartered banks in New York are regulated simultaneously by the Department and one of the above agencies, and the Department maintains a close working relationship with each of them. applications for branches and mergers denied on that basis. Supervision. Performance Evaluations can also be requested from the banks supervisory agency. assessment area as an indicator of whether the institution is meeting the

Since CRA examinations are backward-looking, many of an examiners questions are designed to elicit answers that are reflective in nature or seek to measure existing conditions and needs. careful about not discriminating against those who walk through its doors. Site reflects all CRA ratings made public by.

If the closing branch or its service area includes low or moderate income areas, or if it appears that the closing may reduce services for residents in the community, then Department staff routinely contact local planning departments, community groups or leaders in order to: In some instances, Department staff makes site visits to the closing branchs service area. For suggestions regarding this site, Contact Us. ratings to the institution: outstanding, satisfactory, needs to improve,

The Departments outreach, however, may facilitate contact between the institution and the community, and ultimately mitigate a potentially adverse impact on the community. We devote particular attention to qualitative informationgathered through examiners conversations with local experts and bank leadersthat adds important nuance to quantitative data and better illuminates a communitys needs. CRA credit for activities directed toward low and moderate income census FRB Ratings Page

- May assist in identifying low and moderate income areas for purposes of CRA. The text of the regulation is available online at www.ecfr.gov. Please select search criteria and click Submit Query: CRA Home Page

An institutions assessment area reflects those areas in which it operates branches, accepts deposits and/or does a significant amount of lending. As of June 30, 2011, OTS is no longer an active regulatory agency. Last Modified:

Make a difference with a job at the nation's central bank. whether the investments are a different type from those provided by most other investors. The Department encourages the public to comment on a proposed closing. OTS The Federal Reserve Bank (FRB) regulates those state-chartered institutions that are members of the Federal Reserve System. These ratings, though, are based on different standards since the banks' activities are more limited. In addition, Welcome to the FFIEC Interagency CRA Rating Search. facilitate dialogue between the bank and the community about local concerns, including, but not limited to, future access to branch services, and seeking an appropriate purchaser or successor tenant for the site. If an organizations activities meet the community development definition set forth above, a bank can receive favorable consideration for supporting the organization, in a CRA Performance Evaluation. assessment areas. 2 Regulation BB (Community Reinvestment Act), Code of Federal Regulations, Title 12, 228.11. search engine will enable you to find the latest CRA ratings of financial Contacts are often leaders of grassroots community organizations (e.g., housing or credit counseling organizations), community-based development or financial intermediaries (e.g., community development corporations), government offices or agencies (e.g., economic development associations), business or labor groups (e.g., chambers of commerce), or civil rights and consumer protection groups (e.g., fair housing organizations). CRA examinations are backward-looking, in that they examine the banks performance since its last completed evaluation.3. 2022 Federal Reserve Bank of Minneapolis. In accordance with New York Banking Law 28-c, and Supervisory Procedure G 112, state-chartered institutions must give notice to the Department of their intent to close a branch office at least 90 days in advance of the planned closing. FDIC Ratings Page For example, banks that have N.A. Call the bank for more information. longer for small institutions. included in the results display, hold the Ctrl key down & click The Department of Financial Services regulates only New York State-chartered financial institutions. how branches are distributed throughout the community; the bank's history of opening and closing branches, particularly those serving low- or moderate-income people or geographic areas; what alternative systems (such as ATMs or telephone, computer, or by-mail banking services) the bank provides for delivering services to low- and moderate-income areas and individuals; and. qualified investments. Examiners want to know, Service. Staff are available to work with groups to address specific problems in the community that affect access to capital and community members are encouraged to inform the Department about local issues that may be relevant to a banks CRA performance or which may benefit from the Departments involvement. This understanding is established early on in the CRA examination process through the completion of a performance context analysis.4, According to the federal banking regulators, the performance context is a broad range of economic, demographic, and institution- and community-specific information that an examiner reviews to understand the context in which an institutions record of performance should be evaluated.5 While the analysis is not intended to be an exhaustive assessment of community credit needs, it is designed to provide a researchbased narrative describing the environment in which the bank conducts its CRA activitiesa narrative that examiners can then use to enforce the regulation in a consistent manner across institutions and markets.6. tracts or toward low and moderate income individuals. Since economic conditions and community credit needs are not uniform and can vary considerably across assessment areas, examiners need to develop an understanding of assessment area conditions in order to appropriately evaluate a depository institutions CRA performance.

5 See Community Reinvestment Act; Interagency Questions and Answers Regarding Community Reinvestment.

Overall, the questions are designed to stimulate a discussion between the local leader(s) and the examiner about the local context, including the willingness and responsiveness of financial institutions in the assessment area to work with local residents and professionals in meeting community credit needs.8. whether the range of services provided meets the needs of various neighborhoods at all income levels.