Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-23-2006
March 10, 2006
Community Reinvestment Act
New Interagency Questions and Answers
Summary:
The FDIC, the Federal Reserve Board, and the Office of the Comptroller of the Currency (the agencies) have published
the attached informal staff guidance on community reinvestment in the form of questions and answers (Q&As). The
agencies proposed the guidance for comment on November 10, 2005. After considering the comments, the agencies
have adopted all of the proposed Q&As as they were proposed or with revisions in response to the comments.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
CRA Officers, Compliance Officers, and
Chief Executive Officers
Related Topics:
Community Reinvestment Act Joint Final Rules
Attachment:
New Interagency Questions and Answers
Regarding Community Reinvestment - PDF 94k
(PDF Help)
Contact:
Pamela Freeman, Policy Analyst, Compliance Policy
and Examination Support, pfreeman@fdic.gov or (202)
898-6568.
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2006/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center (1-877-275-3342 or 703-562-
2200).
Highlights:
Several significant revisions to the Community
Reinvestment Act (CRA) regulations took effect on
September 1, 2005. The agencies developed the attached
Interagency Questions and Answers to address the
revisions. Fourteen Q&As concern the new changes, and
two represent revisions to existing Q&As.
The 14 new questions and answers:
• Address the revised definition of "community
development," which includes activities that revitalize or
stabilize a distressed or underserved nonmetropolitan
middle-income geography or a designated disaster
area.
• Address the community development test applicable to
intermediate small banks and how these banks will be
evaluated under it.
• Explain how examiners evaluate outstanding qualified
investments made during the prior evaluation period.
• Clarify that any small bank (including an intermediate
small bank) may request that activities of an affiliate in
the bank's assessment area(s) be considered in its
evaluation.
• Explain that the asset size thresholds for "small bank"
and "intermediate small bank" will be adjusted annually
based on changes to the Consumer Price Index.
The revisions to two existing Q&Aamp;s provide additional
clarification and examples of community development
services and qualified investments.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-23-2006
March 10, 2006
Community Reinvestment Act
New Interagency Questions and Answers
Summary:
The FDIC, the Federal Reserve Board, and the Office of the Comptroller of the Currency (the agencies) have published
the attached informal staff guidance on community reinvestment in the form of questions and answers (Q&As). The
agencies proposed the guidance for comment on November 10, 2005. After considering the comments, the agencies
have adopted all of the proposed Q&As as they were proposed or with revisions in response to the comments.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
CRA Officers, Compliance Officers, and
Chief Executive Officers
Related Topics:
Community Reinvestment Act Joint Final Rules
Attachment:
New Interagency Questions and Answers
Regarding Community Reinvestment - PDF 94k
(PDF Help)
Contact:
Pamela Freeman, Policy Analyst, Compliance Policy
and Examination Support, pfreeman@fdic.gov or (202)
898-6568.
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2006/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center (1-877-275-3342 or 703-562-
2200).
Highlights:
Several significant revisions to the Community
Reinvestment Act (CRA) regulations took effect on
September 1, 2005. The agencies developed the attached
Interagency Questions and Answers to address the
revisions. Fourteen Q&As concern the new changes, and
two represent revisions to existing Q&As.
The 14 new questions and answers:
• Address the revised definition of "community
development," which includes activities that revitalize or
stabilize a distressed or underserved nonmetropolitan
middle-income geography or a designated disaster
area.
• Address the community development test applicable to
intermediate small banks and how these banks will be
evaluated under it.
• Explain how examiners evaluate outstanding qualified
investments made during the prior evaluation period.
• Clarify that any small bank (including an intermediate
small bank) may request that activities of an affiliate in
the bank's assessment area(s) be considered in its
evaluation.
• Explain that the asset size thresholds for "small bank"
and "intermediate small bank" will be adjusted annually
based on changes to the Consumer Price Index.
The revisions to two existing Q&Aamp;s provide additional
clarification and examples of community development
services and qualified investments.Inactive