What are the four possible ratings on a CRA evaluation?

What are the four possible ratings on a CRA evaluation?

What are the four possible ratings on a CRA evaluation? Upon completion of a CRA examination, an overall CRA Rating is assigned using a four-tiered rating system. These ratings are: Outstanding, Satisfactory, Needs to Improve, and Substantial Noncompliance.

What is a bank CRA rating? Definitions of CRA Ratings – FEDERAL RESERVE BANK of NEW YORK. In connection with the assessment of each insured depository institution’s CRA performance, a rating is assigned from the following group: Outstanding record of meeting community credit needs. Needs to improve record of meeting community credit needs.

What does the CRA rating reflect? Using Federal Reserve data on a large sample of CRA exams, this analysis found that CRA ratings reflect actual differences in bank performance on the retail lending test and the investment test.

Why are CRA ratings important? CRA ratings are public, which gives members of the community the opportunity to send comments to regulators about whether they think a bank is doing a good job investing in the community.

What are the four possible ratings on a CRA evaluation? – Related Questions

Are CRA ratings public?

Examination ratings are not made public until 45-60 days after the examination has concluded. Exams for smaller institutions can conclude one to two weeks after they begin (the exam date listed is when the exam began), but often go longer for small institutions.

Which is a test to evaluate CRA in banks?

Banks have operated under the Community Reinvestment Act (CRA) for 31 years. The CRA requires banks to help meet the needs of low- and moderate-income (LMI) persons and distressed geographies through lending, investment, and service.

Who does CRA apply to?

The CRA applies to FDIC-insured depository institutions, including national banks, state-chartered banks, and savings associations. However, credit unions backed by the National Credit Union Share Insurance Fund and other non-bank entities are exempt from the legislation.

What does the CRA investment test look at?

When examiners evaluate a bank’s performance under the investment test, four criteria are considered: 1) the dollar amount of qualified investments; 2) the innovativeness and complexity of the investments; 3) the responsiveness to credit and community development needs; and 4) the degree to which qualified investments

What information is found in the CRA Public File?

The contents of the public file for covered financial institutions include both point-in-time (CRA evaluations) and ongoing information to help the public understand the bank’s capacity and ability to serve assessment area communities through its lending and, as applicable, community development activities.

Which CRA test is weighted more heavily?

Evaluations are based on lending, investment and service tests; for most banks, the lending test is weighted most heavily in determining the overall rating.

What is the primary purpose of CRA?

The Community Reinvestment Act (CRA) is a law intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.

What are CRA requirements?

Here are five basic CRA requirements:
Maintain a Public File. Institutions are required to maintain and update a public file that contains specific information about itsCRA performance.
Post Public Notice (Lobby Poster)
Data Collection and Data Reporting.
Respond to Consumer Complaints.
Determine Assessment Area.

What types of loans are CRA reportable?

Loans with original amounts of $1 million or less that have been reported in Schedule RC-C, part I: On the FFIEC 041 for banks with less than $300 million in total assets, item 4, column B, “Commercial and industrial loans;”

How often are banks evaluated for CRA?

A bank with current assets of $250 million or less that received an overall CRA rating of outstanding or satisfactory at its last CRA evaluation may be evaluated not more than once every 60 months or 48 months, respectively.

How often is CRA updated?

COVID-19: Objections, appeals and taxpayer relief

How often is CRA exam?

How often does the OCC conduct a CRA examination

What is a CRA service test?

The 1977 Community Reinvestment Act (CRA), originally enacted by Congress to combat credit “redlining” in low- and moderate-income neighborhoods, includes a “service test” that could provide powerful incentives to financial institutions for improving retail banking services for low-income unbanked and underbanked

What is a CRA assessment?

A notice of assessment (NOA) is an annual statement sent by the Canada Revenue Agency (CRA) to taxpayers detailing the amount of income tax they owe. It includes details such as the amount of their tax refund, tax credit, and income tax already paid.

What is CRA test?

THE TEST. METHOD CRA-TestingĀ® is an incremental exercise test used to determine your Prime, Anaerobic, and Peak heart rate zones. Each of these heart rate zones corresponds to utilization of a different energy system/fuel source (i.e. Fat, carbohydrates, protein).

What Reg is CRA?

The Community Reinvestment Act (CRA), enacted by Congress in 1977 (12 U.S.C. 2901) and implemented by Regulations 12 CFR parts 25, 228, 345, and 195, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.

Who provides a bank’s CRA public notice?

Each office or branch of a bank must post a notice in its lobby that describes the purpose of the Community Reinvestment Act. This notice also explains that the public has a right to review a bank’s CRA file and to make written comments about the bank’s CRA performance.

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