Community Reinvestment Act Ratings Matrix Quiz
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Questions and Answers

What does an 'Outstanding' rating indicate in the Community Reinvestment Act Intermediate Small Bank Community Development Test?

  • Excellent responsiveness to community development needs (correct)
  • Inadequate responsiveness to community development needs
  • Poor responsiveness to community development needs
  • Adequate responsiveness to community development needs
  • What is considered in determining an institution's community development performance in its assessment area(s)?

  • Capacity and the need and availability of community development opportunities (correct)
  • Number of branches in the assessment area(s)
  • Size of the institution's assets
  • Profit margin of the institution
  • What is the significance of 'Substantial Noncompliance' in the Community Reinvestment Act Intermediate Small Bank Community Development Test?

  • The institution's performance does not affect expected standards
  • The institution's performance slightly exceeds expected standards
  • The institution's performance meets all expected standards
  • The institution's performance is significantly below the expected standards (correct)
  • What does an 'Satisfactory' rating indicate in the Community Reinvestment Act Intermediate Small Bank Community Development Test?

    <p>Adequate responsiveness to community development needs</p> Signup and view all the answers

    What are some considerations included in the assessment criteria for the Community Reinvestment Act?

    <p>Community development loans, qualified investments, and community development services</p> Signup and view all the answers

    How are assessment areas examined by Metropolitan Statistical Areas (MSAs) and non-MSA areas within each state where the institution has branches?

    <p>They are grouped for evaluation</p> Signup and view all the answers

    What is considered in weighing the significance of the institution's activities in each assessment area?

    <p>Retail lending and community development opportunities</p> Signup and view all the answers

    How are preliminary ratings such as 'Satisfactory,' 'Outstanding,' 'Needs to Improve,' or 'Substantial Noncompliance' determined based on the institution's performance?

    <p>Based on the institution's performance</p> Signup and view all the answers

    For institutions operating in multiple states or multi-state MSAs, how is the overall CRA rating determined?

    <p>By considering the institution's record in different states or MSAs</p> Signup and view all the answers

    What factors are taken into account in the assessment process of the Community Reinvestment Act?

    <p>Demographic and economic conditions in each assessment area</p> Signup and view all the answers

    What does the assessment process aim to ensure regarding an institution's performance in assessment areas?

    <p>Consistency with CRA standards</p> Signup and view all the answers

    What is reviewed during the assessment process of the Community Reinvestment Act to prevent discriminatory or illegal credit practices?

    <p>Evidence of discriminatory or illegal credit practices and evaluation of policies and procedures to prevent them</p> Signup and view all the answers

    What does a comprehensive evaluation of an institution's performance under the Community Reinvestment Act aim to provide?

    <p>A comprehensive evaluation of performance under CRA</p> Signup and view all the answers

    What type of areas are examined by Metropolitan Statistical Areas (MSAs) within each state where an institution has branches?

    <p>Assessment areas</p> Signup and view all the answers

    What is weighed when considering the significance of an institution's activities in each assessment area?

    <p>Retail lending and community development opportunities</p> Signup and view all the answers

    When should the institution's public files be reviewed during an examination?

    <p>When there is no need to review each branch or each complete public file during every examination</p> Signup and view all the answers

    What should be contained in the public file(s) in the institution’s main office and in each state?

    <p>Written comments from the public relating to the institution’s CRA performance and any responses to them for the current and preceding two calendar years</p> Signup and view all the answers

    What should be considered when determining the extent to which the institution’s public files should be reviewed?

    <p>The institution’s record of compliance with public file requirements in previous examinations</p> Signup and view all the answers

    What is required to be displayed in branches' lobbies as part of the public notice?

    <p>$CRA$ public notice as required by § 345.44 and Appendix B. XI–3.9</p> Signup and view all the answers

    What should be included in a list of services in the public file(s)?

    <p>$A$ list of services (loan and deposit products and transaction fees generally offered)</p> Signup and view all the answers

    $HMDA$ Disclosure Statements for which entities should be included in assessment of an institution's $CRA$ record, if applicable?

    <p>$For$ each non-depository affiliate the institution has elected to include in assessment of its $CRA$ record, if applicable</p> Signup and view all the answers

    What does a quarterly report in the public file(s) pertain to?

    <p>The institution’s loan-to-deposit ratio for each quarter of the prior calendar year.</p> Signup and view all the answers

    What does a map showing boundaries of each assessment area help determine?

    <p>The geographies contained within each assessment area.</p> Signup and view all the answers

    What does a list of branches opened and closed during examinations help assess?

    <p>Changes to the institution's branching structure since its last examination.</p> Signup and view all the answers

    What does a review of complaints about compliance with public file requirements help determine?

    <p>Whether branches display an accurate public notice in their lobbies.</p> Signup and view all the answers

    Study Notes

    Community Reinvestment Act Assessment Criteria

    • The text discusses the assessment criteria for the Community Reinvestment Act (CRA).
    • It specifies the evaluation of community development performance, responsiveness to community development needs, and the institution's capacity.
    • The assessment includes considerations such as community development loans, qualified investments, and community development services.
    • It involves grouping assessment areas examined by Metropolitan Statistical Areas (MSAs) and non-MSA areas within each state where the institution has branches.
    • The significance of the institution's activities in each assessment area is weighed, considering factors like retail lending and community development opportunities.
    • The assessment involves assigning preliminary ratings such as "Satisfactory," "Outstanding," "Needs to Improve," or "Substantial Noncompliance" based on the institution's performance.
    • For institutions operating in multiple states or multi-state MSAs, the overall CRA rating is determined by considering the institution's record in different states or MSAs.
    • Factors such as demographic and economic conditions in each assessment area are taken into account in the assessment process.
    • The assessment also involves reviewing evidence of discriminatory or illegal credit practices and evaluating the institution's policies and procedures to prevent such practices.
    • The assessment aims to ensure that the institution's performance in assessment areas is consistent with the CRA standards.
    • The text emphasizes the importance of considering the institution's activities, retail lending, community development opportunities, and demographic and economic conditions in each assessment area.
    • The assessment process aims to provide a comprehensive evaluation of the institution's performance under the Community Reinvestment Act.

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    Test your knowledge of the Community Reinvestment Act's Intermediate Small Bank Community Development Test Ratings Matrix. Evaluate your understanding of the different rating categories and an institution's community development performance.

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