Community Reinvestment Act Information
The Act (CRA)
The CRA was enacted in 1977 to prevent redlining and to encourage banks and thrifts to
help meet the credit needs of all segments of their communities, including low- and
moderate-income neighborhoods. It extends and clarifies the longstanding expectation that
banks will serve the convenience and needs of their local communities. The CRA and its
implementing regulations require federal financial institution regulators to assess the
record of each bank and thrift in helping to fulfill their obligations to the community
and to consider that record in evaluating applications for charters or for approval of
bank mergers, acquisitions, and branch openings. The federal financial institution
regulators are: Office of the Comptroller of the Currency; Board of Governors of the
Federal Reserve System; Federal Deposit Insurance Corporation; and Office of Thrift
Supervision.
The law provides a framework for depository institutions and community organizations to
work together to promote the availability of credit and other banking services to
underserved communities. Under its impetus, banks and thrifts have opened new branches,
provided expanded services, adopted more flexible credit underwriting standards, and made
substantial commitments to state and local governments or community development
organizations to increase lending to underserved segments of local economies and
populations.
CRA Institutions
CRA applies to federally insured depository institutions, national banks, thrifts, and
state-chartered commercial and savings banks.
OCC’s CRA Responsibilities
The CRA’s implementing regulation (12 CFR 25, et seq.) requires the OCC to assess
a national bank’s record of helping to meet the credit needs of its entire community,
including low- and moderate-income neighborhoods, consistent with safe and sound
operations. It also mandates that the agency consider that record in its evaluation of a
bank’s application for new branches or relocation of an existing branch, bank mergers
and consolidations, and other corporate activities. In general, the OCC conducts a CRA
examination of a national bank every three years. However, the Gramm-Leach-Bliley Act mandates
an extended examination cycle for smaller banks. CRA examinations for banks with an overall
CRA rating of outstanding and aggregate assets of $250 million or less can be started no sooner
than 60 months after the most recent CRA examination. Similarly, CRA examinations for banks
with an overall CRA rating of satisfactory and aggregate assets of $250 million or less can be
started no sooner than 48 months after the most recent CRA examination. Banks may be removed
from this extended CRA examination cycle for reasonable cause or in connection with an
application for a depository facility. The OCC publishes an advance notice of
scheduled CRA examinations quarterly. A written performance evaluation of the bank’s
CRA activities, including a CRA rating, is prepared at the end of each CRA examination and
made available to the general public. The OCC encourages community and civic
organizations, government, and other members of the public to express their views about a
bank’s CRA performance to the bank and the OCC at the earliest possible time. This
allows the bank to address any concerns and the OCC to take the public’s views into
account in evaluating the bank’s CRA record and reaching conclusions about its
performance ratings. If those comments are sent to the OCC, the OCC will also consider
them when reviewing applications covered by the CRA.
Additional Information
If you are interested in obtaining additional information about CRA, visit our website
at http://www.occ.treas.gov or contact:
Office of the Comptroller of the Currency
Compliance Division
250 E Street, SW - Mail Stop 6-7
Washington, DC 20219
Telephone: (202) 874-4428
Fax: (202) 874-5221
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