|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Joint Press Release                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|For Immediate Release                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Banking Agencies Issue Final Community Reinvestment Act 
        Rules
The federal banking agencies today approved final Community 
              Reinvestment Act (CRA) rules that are intended to reduce regulatory 
              burden on community banks while making CRA evaluations more effective 
              in encouraging banks to meet community development needs. The final 
              rules are essentially as the agencies proposed them in March.
            The final rules raise the small bank asset size threshold to assets 
              of less than $1 billion without regard to holding company affiliation. 
              Accordingly, the new rules reduce data collection and reporting 
              burden for "intermediate small banks" (banks with assets 
              between $250 million and less than $1 billion ) and, at the same 
              time, encourage meaningful community development lending, investment 
              and services by these banks.
            Under the new rules:
            Intermediate small banks will no longer need to collect and 
                report CRA loan data. Nevertheless, examiners will continue to 
                evaluate bank lending activity in the CRA examinations of intermediate 
                small banks and disclose results in the public evaluation.
              Intermediate small banks will be evaluated under two separately 
                rated tests: the small bank lending test; and a flexible new community 
                development test that includes an evaluation of community development 
                loans, investments, and services in light of community needs and 
                the capacity of the bank. Satisfactory ratings are required on 
                both tests to obtain an overall satisfactory CRA rating.In addition, for banks of any size:
            The new rules expand the definition of community development 
                to include activities that revitalize or stabilize designated 
                disaster areas and distressed or underserved rural areas. By including 
                designated distressed or underserved rural areas, the agencies 
                intend to recognize and encourage community development in more 
                rural areas. (Designated distressed or underserved rural areas 
                are to be listed by the agencies on the Federal Financial Institutions 
                Examination Council website, www.FFIEC.gov/cra.)
              The regulations also clarify when discrimination or other illegal 
                credit practices by a bank or its affiliate will adversely affect 
                an evaluation of the bank's CRA performance.The rules, which are being issued jointly by the Board of Governors 
              of the Federal Reserve System, the Federal Deposit Insurance Corporation, 
              and the Office of the Comptroller of the Currency, take effect on 
              September 1, 2005. The agencies will have interim CRA examination 
              procedures for intermediate small banks in place by August 1.
            A draft of the final rules is attached.
            Attachment (1.2 MB 
              PDF)Media Contacts:Federal Reserve
    Andrew Williams
    202-452-2955FDIC
    David Barr
    202-898-6992OCC
          Kevin Mukri
    202-874-5770
2005 Banking and consumer 
  regulatory policyHome | News and eventsAccessibility
Last update: July 19, 2005
|The federal banking agencies today approved final Community 
              Reinvestment Act (CRA) rules that are intended to reduce regulatory 
              burden on community banks while making CRA evaluations more effective 
              in encouraging banks to meet community development needs. The final 
              rules are essentially as the agencies proposed them in March.
            The final rules raise the small bank asset size threshold to assets 
              of less than $1 billion without regard to holding company affiliation. 
              Accordingly, the new rules reduce data collection and reporting 
              burden for "intermediate small banks" (banks with assets 
              between $250 million and less than $1 billion ) and, at the same 
              time, encourage meaningful community development lending, investment 
              and services by these banks.
            Under the new rules:
            Intermediate small banks will no longer need to collect and 
                report CRA loan data. Nevertheless, examiners will continue to 
                evaluate bank lending activity in the CRA examinations of intermediate 
                small banks and disclose results in the public evaluation.
              Intermediate small banks will be evaluated under two separately 
                rated tests: the small bank lending test; and a flexible new community 
                development test that includes an evaluation of community development 
                loans, investments, and services in light of community needs and 
                the capacity of the bank. Satisfactory ratings are required on 
                both tests to obtain an overall satisfactory CRA rating.In addition, for banks of any size:
            The new rules expand the definition of community development 
                to include activities that revitalize or stabilize designated 
                disaster areas and distressed or underserved rural areas. By including 
                designated distressed or underserved rural areas, the agencies 
                intend to recognize and encourage community development in more 
                rural areas. (Designated distressed or underserved rural areas 
                are to be listed by the agencies on the Federal Financial Institutions 
                Examination Council website, www.FFIEC.gov/cra.)
              The regulations also clarify when discrimination or other illegal 
                credit practices by a bank or its affiliate will adversely affect 
                an evaluation of the bank's CRA performance.The rules, which are being issued jointly by the Board of Governors 
              of the Federal Reserve System, the Federal Deposit Insurance Corporation, 
              and the Office of the Comptroller of the Currency, take effect on 
              September 1, 2005. The agencies will have interim CRA examination 
              procedures for intermediate small banks in place by August 1.
            A draft of the final rules is attached.
            Attachment (1.2 MB 
              PDF)                                                                                                                                                                                                                                                                                                                                                
|Federal Reserve                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|FDIC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|OCC