25 Questions
What does an 'Outstanding' rating indicate in the Community Reinvestment Act Intermediate Small Bank Community Development Test?
Excellent 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
What is the significance of 'Substantial Noncompliance' in the Community Reinvestment Act Intermediate Small Bank Community Development Test?
The institution's performance is significantly below the expected standards
What does an 'Satisfactory' rating indicate in the Community Reinvestment Act Intermediate Small Bank Community Development Test?
Adequate responsiveness to community development needs
What are some considerations included in the assessment criteria for the Community Reinvestment Act?
Community development loans, qualified investments, and community development services
How are assessment areas examined by Metropolitan Statistical Areas (MSAs) and non-MSA areas within each state where the institution has branches?
They are grouped for evaluation
What is considered in weighing the significance of the institution's activities in each assessment area?
Retail lending and community development opportunities
How are preliminary ratings such as 'Satisfactory,' 'Outstanding,' 'Needs to Improve,' or 'Substantial Noncompliance' determined based on the institution's performance?
Based on the institution's performance
For institutions operating in multiple states or multi-state MSAs, how is the overall CRA rating determined?
By considering the institution's record in different states or MSAs
What factors are taken into account in the assessment process of the Community Reinvestment Act?
Demographic and economic conditions in each assessment area
What does the assessment process aim to ensure regarding an institution's performance in assessment areas?
Consistency with CRA standards
What is reviewed during the assessment process of the Community Reinvestment Act to prevent discriminatory or illegal credit practices?
Evidence of discriminatory or illegal credit practices and evaluation of policies and procedures to prevent them
What does a comprehensive evaluation of an institution's performance under the Community Reinvestment Act aim to provide?
A comprehensive evaluation of performance under CRA
What type of areas are examined by Metropolitan Statistical Areas (MSAs) within each state where an institution has branches?
Assessment areas
What is weighed when considering the significance of an institution's activities in each assessment area?
Retail lending and community development opportunities
When should the institution's public files be reviewed during an examination?
When there is no need to review each branch or each complete public file during every examination
What should be contained in the public file(s) in the institution’s main office and in each state?
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
What should be considered when determining the extent to which the institution’s public files should be reviewed?
The institution’s record of compliance with public file requirements in previous examinations
What is required to be displayed in branches' lobbies as part of the public notice?
$CRA$ public notice as required by § 345.44 and Appendix B. XI–3.9
What should be included in a list of services in the public file(s)?
$A$ list of services (loan and deposit products and transaction fees generally offered)
$HMDA$ Disclosure Statements for which entities should be included in assessment of an institution's $CRA$ record, if applicable?
$For$ each non-depository affiliate the institution has elected to include in assessment of its $CRA$ record, if applicable
What does a quarterly report in the public file(s) pertain to?
The institution’s loan-to-deposit ratio for each quarter of the prior calendar year.
What does a map showing boundaries of each assessment area help determine?
The geographies contained within each assessment area.
What does a list of branches opened and closed during examinations help assess?
Changes to the institution's branching structure since its last examination.
What does a review of complaints about compliance with public file requirements help determine?
Whether branches display an accurate public notice in their lobbies.
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.
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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