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.
Address the community development test applicable to intermediate small banks and how these banks will be evaluated under it.
Explain how examiners evaluate outstanding qualified investments made during the prior evaluation period.
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.
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
FDIC-Supervised Banks (Commercial and Savings)
CRA Officers, Compliance Officers, and
Chief Executive Officers
Community Reinvestment Act Joint Final Rules
New Interagency Questions and Answers Regarding Community Reinvestment - PDF 94k (PDF Help)
Pamela Freeman, Policy Analyst, Compliance Policy and Examination Support, firstname.lastname@example.org or (202) 898-6568.
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).