FDIC Issues List of Banks Examined for CRA Compliance in November 2023
Washington, February 2, 2024 –
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 November 2023. The CRA, enacted in 1977, aims to encourage banks and thrifts to meet local credit needs, particularly in low- and moderate-income neighborhoods, while ensuring the safety of their operations. This release is part of the FDIC’s commitment to public disclosure, mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
The FDIC has assigned evaluation ratings to each institution on the list based on their compliance with the CRA. These ratings help stakeholders understand how well banks are serving their communities and meeting the requirements of the law. The list is available to the public and includes all state nonmember banks whose evaluations have been made publicly available since July 1, 1990, along with the respective rating for each bank.
For those interested in obtaining the list, it can be accessed from the FDIC’s Public Information Center or requested as a hard copy. The Public Information Center is located at 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. Alternatively, individuals can contact the FDIC directly at 877-275-3342 or 703-562-2200 for further assistance.
Benefits of the Community Reinvestment Act
The Community Reinvestment Act plays a crucial role in promoting economic development and empowering underserved communities. By encouraging financial institutions to provide credit and banking services to low- and moderate-income individuals and neighborhoods, the CRA helps to address inequality and promote access to financial resources. Banks and thrifts that comply with the CRA are better equipped to meet the diverse needs of their communities, fostering economic growth and stability.
Frequently Asked Questions
1. What is the Community Reinvestment Act (CRA)?
The Community Reinvestment Act is a federal law enacted in 1977 to encourage banks and thrifts to meet the credit needs of the communities they serve, particularly low- and moderate-income neighborhoods.
2. How does the CRA compliance evaluation work?
The FDIC evaluates banks and thrifts for their compliance with the CRA by assessing their lending, investment, and service activities in the communities they serve. The evaluation results in a rating that reflects the institution’s overall performance in meeting the goals of the CRA.
3. Why is the release of the list important?
The release of the list allows the public and stakeholders to access information about the compliance of banks with the Community Reinvestment Act. It promotes transparency and accountability, ensuring that banks are effectively serving the needs of their communities.
4. How can I obtain the list of banks examined for CRA compliance?
The list can be obtained by visiting the FDIC’s Public Information Center or by requesting a hard copy. The contact information for the center is 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. Alternatively, you can contact the FDIC at 877-275-3342 or 703-562-2200.
5. How does CRA compliance benefit communities?
CRA compliance ensures that financial institutions focus on addressing the credit needs of low- and moderate-income individuals and neighborhoods. This leads to increased access to banking services, affordable housing, and small business loans, stimulating economic development and improving the overall well-being of communities.
Conclusion
The release of the list of banks evaluated for CRA compliance in November 2023 by the FDIC is an important step towards promoting transparency and accountability in the banking industry. By complying with the CRA, banks and thrifts fulfill their responsibility to support the credit needs of underserved communities, contributing to economic growth and inclusive prosperity. For more information on the list or the CRA, interested individuals can reach out to the FDIC’s Public Information Center or visit their website.
References:
1. FDIC – FDIC Issues List of Banks Examined for CRA Compliance [Link]
2. Community Reinvestment Act (CRA) [Link]
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