Your questions are not addressed in the text of the Illinois CRA law, which does not provide any details on the timing of Illinois CRA exams. Instead, the Illinois CRA examination process and many other details are left to an eventual rulemaking by the Illinois Department of Financial and Professional Regulation (IDFPR), under its broad rulemaking authority in the Illinois CRA, including the authority to “adopt rules with respect to the frequency and manner of examination.”

The Illinois CRA does authorize the IDFPR to enter into cooperative agreements to conduct joint examinations with federal regulators, including the FDIC. Our hope is that IDFPR examiners will work with federal CRA examiners and add minimal burden to banks’ ongoing federal CRA examinations, but again, such details are left to the IDFPR’s rulemaking. The IBA is closely watching the IDFPR rulemaking process, and we plan to submit a comment letter on behalf of our members.

We note that the IDFPR is planning a series of events leading to its implementation of the Illinois CRA. It began with a kick-off event presented on May 26, 2021 with regulators from Massachusetts, which also has a state-level CRA law and works closely with federal regulators in the examination process. During that event, the Massachusetts regulators explained that they work closely with the FDIC and Federal Reserve to coordinate CRA examinations and evaluations and even issue identical reports with FDIC examiners, but we do not know whether the IDFPR will follow suit in Illinois.

For resources related to our guidance, please see:

• Illinois CRA, 205 ILCS 735/35-15(a) (“The Secretary may adopt rules with respect to the frequency and manner of examination including the imposition of examination fees. . . .”)

• Illinois CRA, 205 ILCS 735/35-25 (“(a) For the purposes of this Act, the Secretary may conduct any examinations under this Act with State, other state, and federal regulators, and may enter into cooperative agreements relative to the coordination of or joint participation in any such examinations, the amount and assessment of fees therefor or enforcement actions relevant thereto, and may accept reports of examinations by such regulators under such arrangements or agreements.

  (b) Nothing in this Section shall be construed as limiting in any way the authority of the Secretary to independently conduct examinations of and enforcement actions against any covered financial institution.

  (c) Any coordination or joint participation established under this Section may seek to promote efficient regulation and effect cost reductions for the Department and covered financial institutions. Any information or material shared for purposes of such coordination or joint participation shall continue to be subject to the requirements under any federal law or State law regarding the privacy or confidentiality of the information or material, and any privilege arising under federal or State law, including the rules of any federal or State court, with respect to the information or material, shall continue to apply to the information or material, but any such coordination or joint participation shall not limit public participation as permitted under certain federal regulations.”)
   

• IDFPR CRA Kickoff Discussion (May 26, 2021), Recording Link
   
• IDFPR Webpage, Illinois CRA