What is the CRA assessment area?

Assessment areas are a central concept of the CRA regulation. Although an institution’s asset size and operations determine which CRA tests are considered, all of the tests measure an institution’s performance in its assessment area(s).

Who defines a bank’s assessment area?

A bank shall delineate one or more assessment areas within which the Board evaluates the bank’s record of helping to meet the credit needs of its community.

What is assessment area delineation?

ยง 25.41 Assessment area delineation. (a) In general. A bank or savings association shall delineate one or more assessment areas within which the appropriate Federal banking agency evaluates the bank’s or savings association’s record of helping to meet the credit needs of its community.

What are the three components of CRA assessments?

What is it? Students’ mathematical understanding occurs at three different levels of mathematical understanding, – concrete, representational, and abstract. It is assumed that through CRA Assessment, evaluation of student mathematical understanding should also consider these three levels of understanding.

What is assessment area?

The assessment area typically encompasses the geographic area that can reasonably be served by each of a bank’s locations, including its main office, any branches, and deposit-taking ATMs. It also usually includes the surrounding areas in which the bank originated or purchased a substantial portion of its loans.

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 are assessment areas?

An assessment area is one or more geographical areas within which a bank is evaluated on its record of helping to meet community credit needs, including areas designated as low- or moderate-income.

What items must be included in the public CRA file?

What Your Bank’s Public CRA File Must Show

  • For the current year and two previous years, all written comments from the public about how your bank is helping meet community credit needs.
  • A copy of the public section of your bank’s most recent CRA performance evaluation.

What does the CRA investment test look at?

Examples include Mortgage Backed Securities, New Market Tax Credits, tax credits, bonds, equity in projects and more. Even grants, historically a mainstay of CRA Investment Test Compliance, have become more complex tool.

Can an institution have more than one assessment area?

Examination Scope For interstate institutions, a minimum of one assessment area from each state, and a minimum of one assessment area from each multistate metropolitan statistical area/metropolitan division (MSA/MD), must be reviewed using the full scope examination procedures.

What CRA information must a branch locations make readily available?

A list of your bank’s current branches with their street addresses and the geographic areas they serve. The list must also show this information for any branches your bank has opened or closed during the current year and previous two years.

What does the CRA rating reflect?

Conclusion. 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.

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