More than 500 banks and other financial institutions will be examined for compliance with rules implementing the Community Reinvestment Act (CRA) in the fourth quarter of this year, and the first of next, the Federal Deposit Insurance Corp. (FDIC) said Friday.
A bit more than half of the exams (55%) for the 518 banks on the schedule will be conducted in the first quarter of next year, the agency said in the release. According to the schedule, 39 banks in Illinois will have the CRA exams, the most of any of the states in the two-quarter period.
Rounding out the top 10 states for the exams over the two quarters are: Iowa, 32; Minnesota, 32; Texas, 31; Missouri, 30; Kansas, 24; California, 19; Kentucky, 19; and Alabama, 18.
In its release, the FDIC noted that CRA examinations are scheduled based on an institution’s asset size and CRA rating. “Absent reasonable cause, an institution with $250 million or less in assets and a CRA rating of Satisfactory can be subject to a CRA examination no more frequently than once every 48 months,” the agency noted. Absent reasonable cause, an institution with $250 million or less in assets and a CRA rating of “outstanding” can be subject to a CRA examination no more frequently than once every 60 months, the agency stated.
The schedules of institutions to be examined, the agency said, are based on the best information now available and are subject to change. “For example, a regulated financial institution not otherwise scheduled for an examination may be examined in connection with the application for a deposit facility. Alternatively, some institutions may require more time and resources than originally allotted, thus delaying other scheduled examinations. If an institution is rescheduled for a different quarter, that information will be included on a later list”