Federal bank regulators dropped a bombshell yesterday, releasing a list of 2022’s most distressed nonmetropolitan middle-income geographies. These areas, often plagued by poverty, unemployment, and population decline, are now eligible for Community Reinvestment Act (CRA) consideration. But critics say the real question is: are banks doing enough to help?
According to the Federal Deposit Insurance Corporation (FDIC), the agencies’ designations continue to reflect local economic conditions, including unemployment, poverty, and population changes. The 2022 list uses the County Intercensal Estimates for 2000-2010 for population estimates due to the lack of available data for 2010-2020.
The 2022 list, available on the Federal Financial Institutions Examination Council (FFIEC) website, includes [list of areas] that have been designated as distressed or underserved. These areas are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list.
But some are questioning the effectiveness of the CRA, and whether banks are truly invested in revitalizing these communities. “It’s a Band-Aid solution,” says one expert. “Banks need to do more to address the root causes of poverty and unemployment in these areas.”
The FDIC’s release comes as part of a joint effort with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency. The agencies apply a one-year lag period for geographies that were included in 2021 but are no longer designated as distressed or underserved in the current list.
As the nation grapples with the ongoing effects of the pandemic and economic downturn, the spotlight is on banks to do their part in revitalizing these communities. Will they rise to the challenge, or will they continue to prioritize profits over people?
Visit the FFIEC website to see the 2022 list, previous years’ lists, and criteria for designating these areas. Contact the Federal Deposit Insurance Corporation for more information on the CRA and its impact on distressed communities.
Related Federal Cases
- FDIC Unveils Six Large Banks’ Secret Filings, Washington, 2025 · Washington
- FDIC Cracks Down: Three Banks Lose Insurance in December Sweep · Washington
- Ford GM Launches FDIC-Insured Auto Loan Banks, Washington DC, 2023 · Utah
- FDIC Unveils Six Large Banks’ Secret Filings · Washington
- FDIC Unveils CRA Compliance Bank Review List, Washington DC, 2025 · Washington
Key Facts
- Agency: FDIC
- Category: White Collar Crime
- Source: Official Source â†â€â€ÂÂ
ðŸâ€ÂÂÂ’ Get the grimiest stories delivered weekly. Subscribe free →
Browse More
All Federal Districts →All Districts →
