The federal banking agencies today announced final guidance
implementing the recent changes to their Community Reinvestment Act (CRA)
regulations. The guidance clarifies,
among other things, the availability of CRA consideration for bank activities
that revitalize or stabilize designated disaster areas.
The guidance indicates that a banks loans, investments, and
services in support of disaster
recovery that help to attract new, or retain existing, businesses or residents
to a designated disaster area will receive CRA community development
consideration for a 36-month period following designation of the area. The
guidance allows for extensions of this period in unusual cases, and the
agencies plan to substantially extend the time periods in the Gulf Coast areas
hit by hurricanes Rita and Katrina.
The guidance also addresses the availability of CRA
community development consideration for bank activities that revitalize or
stabilize underserved or distressed middle-income rural areas. The other major issue it addresses is
implementation of the new community development test for banks with assets
between $250 million and $1 billion.
The guidance, which takes the form of questions and answers,
was proposed for public comment on
November 10, 2005. Some of the
questions and answers have been revised from the proposal to reflect
suggestions from commenters.
The guidance is being issued by the Board of Governors of
the Federal Reserve System, the Federal Deposit Insurance Corporation, and the
Office of the Comptroller of the Currency.
The guidance implements changes to the agencies CRA regulations that
took effect on September 1, 2005. The
guidance will be effective upon publication in the Federal Register, which is
expected shortly. The Federal Register notice is attached.
CRA directs the agencies to assess an insured depository
institution's record of meeting the credit needs of its entire community, and
to consider that record when acting on certain applications for branches,
office relocations, mergers, consolidations and other corporate activities.
Attachment
Federal Reserve Susan
Stawick (202) 452-2955
FDIC Frank Gresock (202)
898-6634
OCC Dean Debuck (202)
874-5770