WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) is flexing its muscle, announcing schedules for Community Reinvestment Act (CRA) examinations for the first and second quarters of 2023. While it doesn’t involve perp walks or courtroom drama, this is a quiet form of enforcement, a deep dive into where banks are – and aren’t – putting their money.
The CRA, a 1977 law, isn’t about sending loan sharks to jail. It’s about forcing banks to actually serve the communities they drain profits from. Specifically, it’s designed to push financial institutions to meet the credit needs of all neighborhoods, including those labeled “low- and moderate-income.” The FDIC, along with other federal regulators, is tasked with making sure banks aren’t redlining or otherwise discriminating in their lending practices.
These examinations aren’t random. Banks with smaller asset bases – $250 million or less – and a “Satisfactory” CRA rating can expect a check-up no more than once every 48 months. Those with an “Outstanding” rating get a slightly longer leash, up to 60 months. But don’t think a clean record guarantees immunity. The FDIC warns these schedules are fluid. A bank applying to open a new branch? Expect a surprise audit. An exam running long? Others will be delayed.
The FDIC isn’t keeping this close to the vest. They’re actively soliciting public comment on the institutions being examined. Got a gripe about your bank’s lending practices? The FDIC wants to hear it. Comments should be directed to the bank itself or to the appropriate FDIC regional office. They claim all input received before the exam wraps will be considered – a promise we’ll be watching closely.
The schedules, detailing which banks will be under the microscope between January 1, 2023, and June 30, 2023, are now available. You can find them by calling (703) 562-2200 or (877) 275-3342, faxing a request to (703) 562-2296, or writing to the FDIC Public Information Center in Arlington, VA. The full list of scheduled examinations and regional contact information are attached.
This isn’t about spectacular busts, but it’s a crucial part of keeping the financial system – and the communities it impacts – from completely collapsing. The Grimy Times will continue to monitor these examinations and report on any institutions found to be falling short of their obligations. Stay tuned.
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