Evaluations for compliance with the Community Reinvestment Act (CRA) are slated for 567 banks and thrifts supervised by the Federal Deposit Insurance Corp. (FDIC) during the second and third quarters of this year, the agency said in a press release Thursday.
The FDIC lists a total of 306 institutions scheduled for the evaluations during the second quarter, with another 261 slated to receive the exams during the third quarter. Like the OCC, the FDIC, in performing its evaluations, will be examining how well the institutions are satisfying the mandate set by CRA to meet the credit needs of the communities in which they are chartered to do business, including low- and moderate-income neighborhoods, and consistent with safe and sound operations.
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. 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.
Institutions receive one of four possible ratings when evaluated for CRA: “outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance.”
The schedules of institutions to be examined April 1, 2019, through June 30, 2019, and July 1, 2019, through Sept. 30, 2019, are subject to change, the agency noted. “For example, a regulated financial institution not otherwise scheduled for an examination may be examined in connection with the application for a deposit facility,” it said.
Regulators encourage public comment on the institutions scheduled to receive CRA evaluations. Comments about FDIC-supervised institutions should be directed to the institutions themselves or to the deputy regional director of the appropriate FDIC regional office. The agency noted that all public comments received prior to completion of a CRA examination will be considered.