The large bank performance criteria — the lending, investment, and service tests — cover all banks with assets of $250 million or more and banks, regardless of asset size, owned by holding companies with total bank and thrift assets of $1 billion or more unless they requested designation and received approval as …
What is CRA examination?
Depository institutions undergo CRA exams about every 3 years, depending on past performance. Every business quarter, the Federal Deposit Insurance Corporation (FDIC) releases the CRA Examination Schedule by region and lists the information about each bank that is being examined.
What are CRA requirements?
Here are five basic CRA requirements:
- Maintain a Public File. Institutions are required to maintain and update a public file that contains specific information about itsCRA performance.
- Post Public Notice (Lobby Poster)
- Data Collection and Data Reporting.
- Respond to Consumer Complaints.
- Determine Assessment Area.
What is CRA eligible?
Generally, loans to small businesses with gross annual revenues $1 million or less that create or retain jobs for low- or moderate-income individuals or in low- or moderate-income geographies, or that otherwise meet the economic development “size” and “purpose” tests, qualify as community development loans.
How does the Community Reinvestment Act work?
The Community Reinvestment Act (CRA) is a law 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, consistent with safe and sound banking operations.
How do I get credit from CRA?
A great way to get CRA credit is to participate in low-income housing projects. These projects are meant to build and/or develop housing for low-income families. This work serves to bring your area together and provide more options for these struggling members of the community.
