§ 228.23 Retail services and products test. ( a ) *Retail Services and Products Test* — ( 1 ) *In general.* Pursuant to § 228.21, the Retail Services and Products Test evaluates the availability of a bank's retail banking services and retail banking products and the responsiveness of those services and products to the credit needs of the bank's entire community, including low- and moderate-income individuals, families, or households, low- and moderate-income census tracts, small businesses, and small farms. The Board evaluates the bank's retail banking services, as described in paragraph (b) of this section, and the bank's retail banking products, as described in paragraph (c) of this section.
( 2 ) *Main offices.* For purposes of this section, references to a branch also include a main office that is open to, and accepts deposits from, the general public.
( 3 ) *Exclusion.* If the Board considers services under the Community Development Services Test in § 228.25, the Board does not consider those services under the Retail Services and Products Test.
( b ) *Retail banking services* — ( 1 ) *Scope of evaluation.* To evaluate a bank's retail banking services, the Board considers a bank's branch availability and services provided at branches, remote service facility availability, and digital delivery systems and other delivery systems, as follows: ( i ) *Branch availability and services.* The Board considers the branch availability and services provided at branches of banks that operate one or more branches pursuant to paragraph (b)(2) of this section.
( ii ) *Remote service facility availability.* The Board considers the remote service facility availability of banks that operate one or more remote service facilities pursuant to paragraph (b)(3) of this section.
( iii ) *Digital delivery systems and other delivery systems.* The Board considers the digital delivery systems and other delivery systems of banks pursuant to paragraph (b)(4) of this section, as follows: ( A ) The Board considers the digital delivery systems and other delivery systems of the following banks: ( 1 ) Large banks that had assets greater than $10 billion as of December 31 in both of the prior two calendar years; and
( 2 ) Large banks that had assets less than or equal to $10 billion as of December 31 in either of the prior two calendar years and that do not operate branches.
( B ) For a large bank that had assets less than or equal $10 billion as of December 31 in either of the prior two calendar years and that operates at least one branch, the Board considers the bank's digital delivery systems and other delivery systems at the bank's option.
( 2 ) *Branch availability and services.* The Board evaluates a bank's branch availability and services in a facility-based assessment area based on the following: ( i ) *Branch distribution.* The Board considers a bank's branch distribution using the following: ( A ) *Branch distribution metrics.* The Board considers the number and percentage of the bank's branches within low-, moderate-, middle-, and upper-income census tracts.
( B ) *Benchmarks.* The Board's consideration of the branch distribution metrics is informed by the following benchmarks: ( 1 ) Percentage of census tracts in the facility-based assessment area that are low-, moderate-, middle-, and upper-income census tracts;
( 2 ) Percentage of households in the facility-based assessment area that are in low-, moderate-, middle-, and upper-income census tracts;
( 3 ) Percentage of total businesses in the facility-based assessment area that are in low-, moderate-, middle-, and upper-income census tracts; and
( 4 ) Percentage of all full-service depository institution branches in the facility-based assessment area that are in low-, moderate-, middle-, and upper-income census tracts.
( C ) *Additional geographic considerations.* The Board considers the availability of branches in the following geographic areas: ( 1 ) Middle- and upper-income census tracts in which a branch delivers services to low- and moderate-income individuals, families, or households to the extent that these individuals, families, or households use the services offered;
( 2 ) Distressed or underserved nonmetropolitan middle-income census tracts; and
( 3 ) Native Land Areas.
( ii ) *Branch openings and closings.* The Board considers a bank's record of opening and closing branches since the previous CRA examination to inform the degree of accessibility of services to low- and moderate-income individuals, families, or households, small businesses, and small farms, and low- and moderate-income census tracts.
( iii ) *Branch hours of operation and services.* The Board considers the following: ( A ) The reasonableness of branch hours in low- and moderate-income census tracts compared to middle- and upper-income census tracts, including, but not limited to, whether branches offer extended and weekend hours.
( B ) The range of services provided at branches in low-, moderate-, middle-, and upper-income census tracts, respectively, including, but not limited to: ( 1 ) Bilingual and translation services;
( 2 ) Free or low-cost check cashing services, including, but not limited to, check cashing services for government-issued and payroll checks;
( 3 ) Reasonably priced international remittance services; and
( 4 ) Electronic benefit transfers.
( C ) The degree to which branch-provided retail banking services are responsive to the needs of low- and moderate-income individuals, families, or households in a bank's facility-based assessment areas.
( 3 ) *Remote service facility availability.* The Board evaluates a bank's remote service facility availability in a facility-based assessment area based on the following: ( i ) *Remote service facility distribution.* The Board considers a bank's remote service facility distribution using the following: ( A ) *Remote service facility distribution metrics.* The Board considers the number and percentage of the bank's remote service facilities within low-, moderate-, middle-, and upper-income census tracts.
( B ) *Benchmarks.* The Board's consideration of the remote service facility distribution metrics is informed by the following benchmarks: ( 1 ) Percentage of census tracts in the facility-based assessment area that are low-, moderate-, middle-, and upper-income census tracts;
( 2 ) Percentage of households in the facility-based assessment area that are in low-, moderate-, middle-, and upper-income census tracts; and
( 3 ) Percentage of total businesses in the facility-based assessment area that are in low-, moderate-, middle-, and upper-income census tracts.
( C ) *Additional geographic considerations.* The Board considers the availability of remote service facilities in the following geographic areas: ( 1 ) Middle- and upper-income census tracts in which a remote service facility delivers services to low- and moderate-income individuals, families, or households to the extent that these individuals, families, or households use the services offered;
( 2 ) Distressed or underserved nonmetropolitan middle-income census tracts; and
( 3 ) Native Land Areas.
( ii ) *Access to out-of-network ATMs.* The Board considers whether the bank offers customers fee-free access to out-of-network ATMs in low- and moderate-income census tracts.
( 4 ) *Digital delivery systems and other delivery systems.* The Board evaluates the availability and responsiveness of a bank's digital delivery systems and other delivery systems, including to low- and moderate-income individuals, families, or households at the institution level by considering: ( i ) The range of retail banking services and retail banking products offered through digital delivery systems and other delivery systems;
( ii ) The bank's strategy and initiatives to serve low- and moderate-income individuals, families, or households with digital delivery systems and other delivery systems as reflected by, for example, the costs, features, and marketing of the delivery systems; and
( iii ) Digital delivery systems and other delivery systems activity by individuals, families or households in low-, moderate-, middle-, and upper-income census tracts as evidenced by: ( A ) The number of checking and savings accounts opened each calendar year during the evaluation period digitally and through other delivery systems in low-, moderate-, middle-, and upper-income census tracts;
( B ) The number of checking and savings accounts opened digitally and through other delivery systems and that are active at the end of each calendar year during the evaluation period in low-, moderate-, middle-, and upper-income census tracts; and
( C ) Any other bank data that demonstrates digital delivery systems and other delivery systems are available to individuals and in census tracts of different income levels, including low- and moderate-income individuals, families, or households and low- and moderate-income census tracts.
( c ) *Retail banking products evaluation* — ( 1 ) *Scope of evaluation.* The Board evaluates a bank's retail banking products offered in the bank's facility-based assessment areas and nationwide, as applicable, at the institution level as follows: ( i ) *Credit products and programs.* The Board evaluates a bank's credit products and programs pursuant to paragraph (c)(2) of this section.
( ii ) *Deposit products.* The Board evaluates a bank's deposit products pursuant to paragraph (c)(3) of this section as follows: ( A ) For large banks that had assets greater than $10 billion as of December 31 in both of the prior two calendar years; and
( B ) For large banks that had assets less than or equal to $10 billion as of December 31 in either of the prior two calendar years, the Board considers a bank's deposit products only at the bank's option.
( 2 ) *Credit products and programs.* The Board evaluates whether a bank's credit products and programs are, consistent with safe and sound operations, responsive to the credit needs of the bank's entire community, including the needs of low- and moderate-income individuals, families, or households, residents of low- and moderate-income census tracts, small businesses, or small farms. Responsive credit products and programs may include, but are not limited to, credit products and programs that: ( i ) Facilitate home mortgage and consumer lending targeted to low- or moderate-income borrowers;
( ii ) Meet the needs of small businesses and small farms, including small businesses and small farms with gross annual revenues of $250,000 or less;
( iii ) Are conducted in cooperation with MDIs, WDIs, LICUs, or CDFIs;
( iv ) Are low-cost education loans; or
( v ) Are special purpose credit programs pursuant to 12 CFR 1002.8.
( 3 ) *Deposit products.* The Board evaluates the availability and usage of a bank's deposit products responsive to the needs of low- and moderate-income individuals, families, or households as follows: ( i ) *Availability of deposit products responsive to the needs of low- and moderate-income individuals, families, or households.* The Board considers the availability of deposit products responsive to the needs of low- and moderate-income individuals, families, or households based on the extent to which a bank offers deposit products that, consistent with safe and sound operations, have features and cost characteristics responsive to the needs of low- and moderate-income individuals, families, or households. Deposit products responsive to the needs of low- and moderate-income individuals, families, or households include but are not limited to, deposit products with the following types of features: ( A ) Low-cost features, including, but not limited to, deposit products with no overdraft or insufficient funds fees, no or low minimum opening balance, no or low monthly maintenance fees, or free or low-cost check-cashing and bill-pay services;
( B ) Features facilitating broad functionality and accessibility, including, but not limited to, deposit products with in-network ATM access, debit cards for point-of-sale and bill payments, and immediate access to funds for customers cashing government, payroll, or bank-issued checks; or
( C ) Features facilitating inclusivity of access by individuals without banking or credit histories or with adverse banking histories.
( ii ) *Usage of deposit products responsive to the needs of low- and moderate-income individuals.* The Board considers the usage of a bank's deposit products responsive to the needs of low- and moderate-income individuals, families, or households based on the following information: ( A ) The number of responsive deposit accounts opened and closed during each year of the evaluation period in low-, moderate-, middle-, and upper-income census tracts;
( B ) In connection with paragraph (c)(3)(ii)(A) of this section, the percentage of responsive deposit accounts compared to total deposit accounts for each year of the evaluation period;
( C ) Marketing, partnerships, and other activities that the bank has undertaken to promote awareness and use of responsive deposit accounts by low- and moderate-income individuals, families, or households; and
( D ) Optionally, any other information the bank provides that demonstrates usage of the bank's deposit products that have features and cost characteristics responsive to the needs of low- and moderate-income individuals, families, or households and low- and moderate-income census tracts.
( d ) *Retail Services and Products Test performance conclusions and ratings* — ( 1 ) *Conclusions.* Pursuant to § 228.28 and appendix C to this part, the Board assigns conclusions for a bank's Retail Services and Products Test performance in each facility-based assessment area, State and multistate MSA, as applicable, and for the institution. In assigning conclusions under this performance test, the Board may consider performance context information as provided in § 228.21(d). The evaluation of a bank's retail banking products under paragraph (c) of this section may only contribute positively to the bank's Retail Services and Products Test conclusion.
( 2 ) *Ratings.* Pursuant to § 228.28 and appendix D to this part, the Board incorporates a bank's Retail Services and Products Test conclusions into its State or multistate MSA ratings, as applicable, and its institution rating.