Highlights:
Several significant revisions to the Community Reinvestment Act (CRA) regulations took effect on September 1, 2005. The agencies developed the attached Interagency Questions and Answers to address the revisions. Fourteen Q&As concern the new changes, and two represent revisions to existing Q&As.
The 14 new questions and answers:
- Address the revised definition of "community development," which includes activities that revitalize or stabilize a distressed or underserved nonmetropolitan middle-income geography or a designated disaster area.
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Address the community development test applicable to intermediate small banks and how these banks will be evaluated under it.
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Explain how examiners evaluate outstanding qualified investments made during the prior evaluation period.
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Clarify that any small bank (including an intermediate small bank) may request that activities of an affiliate in the bank's assessment area(s) be considered in its evaluation.
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Explain that the asset size thresholds for "small bank" and "intermediate small bank" will be adjusted annually based on changes to the Consumer Price Index.
The revisions to two existing Q&Aamp;s provide additional clarification and examples of community development services and qualified investments.
Continuation of FIL-23-2006
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
CRA Officers, Compliance Officers, and
Chief Executive Officers
Related Topics:
Community Reinvestment Act Joint Final Rules
Attachment:
New Interagency Questions and Answers Regarding Community Reinvestment - PDF 94k (PDF Help)
Contact:
Pamela Freeman, Policy Analyst, Compliance Policy and Examination Support, pfreeman@fdic.gov or (202) 898-6568.
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2006/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center (1-877-275-3342 or 703-562-2200).