WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has released a chilling list of state nonmember banks being probed for their failure to comply with the Community Reinvestment Act (CRA). This public disclosure comes as the FDIC scrutinizes these financial institutions for their adherence to the 1977 law designed to promote local credit needs within low- and moderate-income neighborhoods.
The CRA mandates that insured banks and thrifts meet specific credit needs without compromising on safe and sound operations. The list, issued in January 2022, is a stark reminder of the ongoing battle against financial institutions that neglect their community responsibilities.
In accordance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Congress requires the public disclosure of evaluations and ratings for banks or thrifts undergoing CRA examinations since July 1, 1990. The consolidated list is available from the FDIC’s Public Information Center, offering a comprehensive view of compliance issues across the country.
Individual bank evaluations can be obtained directly from the institution or through the FDIC’s Public Information Center. This transparency is crucial for maintaining public trust in the financial sector and ensuring that banks are fulfilling their obligations to communities in need.
The FDIC’s efforts to enforce the CRA highlight a broader trend towards holding financial institutions accountable for their impact on local economies. As the list of examined banks grows, it underscores the importance of compliance with the law and the potential consequences for those who fall short.
For more information, contact Carroll Kim at 202-898-7389. The last update to this list was made on April 4, 2022.
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