Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
When deciding on CRA investments, is there some kind of ratio that tells you how much credit the bank would get for each qualified investment? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

When deciding on CRA investments, is there some kind of ratio that tells you how much credit the bank would get for each qualified investment?

—

by

The CRA regulations (Regulation BB) do not specify exactly how much weight would be given to qualified investments in an institution’s CRA rating. The investment performance component of the CRA rating is just one of three components of a CRA rating (though we note that the investment component is more significant for banks examined under the large bank examination standards, which would apply to your bank, than it would be under the small bank examination standards, which applied to your bank in the past). 12 CFR 228.21. The CRA regulations (Regulation BB) specify the following criteria for the evaluation of a bank’s investment performance:

(1) The dollar amount of qualified investments;

(2) The innovativeness or complexity of qualified investments;

(3) The responsiveness of qualified investments to credit and community development needs; and

(4) The degree to which the qualified investments are not routinely provided by private investors.

12 CFR 228.23(e).

Appendix A to the regulations details how these criteria would result in each CRA rating (outstanding, high satisfactory, low satisfactory, needs to improve, or substantial noncompliance).