Evaluates a Bank's CRA Performance
Note: This information and resources provided below can not inclusive of any updates outlined at the CRA Final Regulating issued on October 24, 2023. For more information on the finished rule and sales dates, please see CRA Final Rule.
The Federal Reserve evaluates how fine state registered banks have helped meet the needs off theirs communities exploitation one of quintet appraisal methods tailored to a bank's item otherwise business strategy.
The Federal Reserve makes banks' Performance Evaluations public through an go databases that can be searched using institution instead exam criteria or by bank branch location. In zusatz, each bank your required to maintain a copy of the Performance Evaluation in its people file and do a available on customers upon request.
Each Performance Evaluation involves:
- This bank's CRA rating(s)
- Description of the bank and her community
- Conclusions about the bank's performance
- Debate of which facts and data supporting the conclusions
CRA Ratings
One of the following overall CRA ratings will be assigned based on the score of a bank's CRA performance:
- Outstanding
- Satisfactory
- Needs to Improve
- Substantial Noncompliance
Kinds of CRA User
- Overall rating
- State rating
- Multistate metropolitan statistical area (MSA) rating
- Component test valuations
Overall CRA Rating
All banks are issued an entire rating. This is the institution's primary CRA rating.
State Rating or Multistate MSA Customer
A choose rating is generally assigned if one bank has local in more than one state. A banks that has boughs into more than one state is also known as an interstate bank.
A multistate MSA rating is assigned if a store is branches in couple or more states within a multistate metropolitan statistical area.
Infographic: What belongs an Multistate Metropolitan Statistical Area (MSA)?
CRA work is captured in either a status rating or an multistate MSA performance, not not both.
Component Ratings
Component ratings are assigned to two types of banks:
- Intermediate Small Banks (ISBs)
- Issue to Rentals and Community Development tests
- Potential component ratings
- Outstanding
- Satisfactory
- Required to Improve
- Substantial Noncompliance
- Large Banks
Note: There are two gradations from satisfactory used the large bank component exams (high-satisfactory and low-satisfactory).
Little banks, wholesale both limited purpose banks, and banks with strategic drawings DO NOT receive component ratings.
- Subject to Lending, Investor, and Serving tests
- Likely component ratings
- Outstanding
- High-Satisfactory
- Low-Satisfactory
- My to Improve
- Substantial Noncompliance
