FDIC Issues List of Banks Examined for CRA Compliance
The Federal Deposit Insurance Corporation (FDIC) has recently released its list of state nonmember banks that were evaluated for compliance with the Community Reinvestment Act (CRA) in October 2023. The CRA, established in 1977, aims to encourage insured banks and thrifts to meet the credit needs of local communities, especially low- and moderate-income neighborhoods, while maintaining safe and sound operations.
Understanding the Community Reinvestment Act
The Community Reinvestment Act was enacted to ensure that banks and thrifts with FDIC insurance are proactive in meeting the financial needs of the communities they serve. By requiring them to invest in areas with lower incomes or in underserved communities, the CRA helps bridge economic and social gaps while promoting fair access to credit and financial services.
As part of the CRA requirements, the FDIC conducts regular examinations of banks to evaluate their compliance. These exams assess the bank’s performance in meeting the credit needs of its community, including loans made for housing, small businesses, and community development projects.
Importance of CRA Compliance
CRA compliance is crucial for banks as it not only fulfills their obligation to serve the communities in which they operate but also presents business opportunities. By meeting the credit needs of underserved communities, banks can boost economic development, create jobs, and contribute to overall community well-being. Additionally, CRA compliance can enhance the bank’s reputation and foster positive relationships with customers and stakeholders.
FDIC List of Banks Examined for CRA Compliance
The recently released FDIC list encompasses the evaluation ratings assigned to state nonmember banks for their CRA compliance. These evaluations provide insight into how well the banks are meeting the credit needs of their communities. The list includes ratings assigned during October 2023 examinations.
To access the consolidated list of state nonmember banks’ evaluations that have been made publicly available since July 1990, along with the ratings for each bank, individuals can visit the FDIC’s Public Information Center website or request a hard copy.
Obtaining the CRA Evaluation
Individuals interested in obtaining the CRA evaluation for a specific bank can directly contact the bank for a copy. Banks are required by law to make their CRA evaluations available upon request. Alternatively, the FDIC’s Public Information Center can provide the evaluation as well.
Frequently Asked Questions
1. What is the Community Reinvestment Act (CRA)?
The Community Reinvestment Act is a law designed to encourage insured banks and thrifts to meet the credit needs of the communities they serve, particularly low- and moderate-income neighborhoods.
2. Why is CRA compliance important for banks?
CRA compliance enables banks to fulfill their responsibility to serve their communities while also creating business opportunities. Compliance can improve the bank’s reputation and enhance relationships with customers and stakeholders.
3. How can I access the FDIC’s list of banks examined for CRA compliance?
To access the FDIC’s list of banks evaluated for CRA compliance, visit the FDIC’s Public Information Center website or request a hard copy from the same source.
4. Can I obtain an individual bank’s CRA evaluation?
Yes, individuals can request an individual bank’s CRA evaluation directly from the bank or through the FDIC’s Public Information Center.
For more information on the Community Reinvestment Act and the recently released list of banks examined for CRA compliance, please visit [VisBanking](https://visbanking.com/). To learn more about our services and pricing, visit [VisBanking Pricing](https://visbanking.com/pricing/). If you would like to request a demo, please visit [VisBanking Request Demo](https://visbanking.com/request-demo/).
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