FDIC Releases List of Banks Examined for CRA Compliance: Promoting Fair Access to Credit
The Federal Deposit Insurance Corporation (FDIC) has recently released its list of state nonmember banks that have been evaluated for compliance with the Community Reinvestment Act (CRA). This list provides valuable information about the efforts made by banks to meet the credit needs of the local communities, especially those in low- and moderate-income neighborhoods while maintaining safe and sound operations.
The Community Reinvestment Act
The Community Reinvestment Act (CRA) is a law enacted in 1977 to promote fair and equal access to credit for individuals and businesses in underserved communities. The primary goal of the CRA is to encourage insured banks and thrifts to provide financial services to all segments of the population, including low- and moderate-income neighborhoods.
Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), banks and thrifts are required to undergo CRA examinations, and the results of these evaluations are made available to the public. The CRA examinations assess the extent to which banks are meeting the credit needs of the communities they serve.
FDIC’s List of Banks Examined for CRA Compliance
The FDIC’s recently released list covers the evaluation ratings assigned to state nonmember banks in October 2023. This comprehensive list includes all state nonmember banks whose evaluation ratings have been made publicly available since July 1, 1990.
The list allows individuals and businesses to review the CRA compliance of their banks, helping them make informed decisions about where to conduct their banking activities. Access to credit is a crucial aspect of economic growth and development, and the FDIC’s list empowers consumers to support institutions that prioritize fair access to credit for all.
Obtaining the List of Banks
The list of banks examined for CRA compliance can be obtained in two ways:
1. Online: A consolidated list of all state nonmember banks, including their respective ratings, can be accessed online. This online resource is convenient and allows for easy searching and filtering based on specific criteria.
2. Hard Copy: For those who prefer a hard copy, the FDIC’s Public Information Center is available to provide physical copies of the list. The center is located at 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. Customers can contact the center at 877-275-3342 or 703-562-2200 to request a hard copy.
Individual banks are also required by law to provide copies of their CRA evaluation upon request. Therefore, customers can reach out directly to their bank’s branch or customer service to obtain their specific CRA evaluation.
Importance of CRA Compliance
CRA compliance plays a vital role in fostering economic growth and development in underserved communities. By ensuring that banks are meeting the credit needs of all individuals and businesses, the CRA promotes access to affordable housing, small business loans, and other essential financial services.
Banks that receive favorable CRA ratings demonstrate their commitment to fair lending practices and community reinvestment. These institutions are actively investing in the well-being and development of the communities they serve, helping to bridge economic gaps and promote financial inclusion.
Frequently Asked Questions
1. What is the Community Reinvestment Act (CRA)?
The Community Reinvestment Act (CRA) is a law enacted in 1977 to ensure that banks and thrifts meet the credit needs of the communities they serve, particularly in low- and moderate-income neighborhoods.
2. Why is CRA compliance important?
CRA compliance is important because it promotes fair and equal access to credit for individuals and businesses in underserved communities. It helps bridge economic gaps, fosters economic growth, and promotes financial inclusion.
3. How can I obtain the list of banks examined for CRA compliance?
The list of banks examined for CRA compliance can be obtained online on the FDIC’s website or by requesting a hard copy from the FDIC’s Public Information Center.
4. Can I get my specific bank’s CRA evaluation?
Yes, you can request your specific bank’s CRA evaluation from the bank itself, as they are required by law to provide this information upon request.
Stay updated with the latest news and information on banking and finance by visiting our website. For more information about our banking solutions, pricing, or to request a demo, visit our website:
1. VisBanking
2. Pricing
3. Request Demo
0 Comments