FDIC Exposes Banks Under CRA Compliance Scrutiny

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has dropped the curtain on its list of state nonmember banks that have been under the microscope for compliance with the Community Reinvestment Act (CRA). This latest round of evaluations, conducted in May 2022, aims to ensure institutions are meeting local credit needs, especially in low- and moderate-income neighborhoods, without compromising their financial stability.

Enacted in 1977, the CRA was a response to the economic exclusion faced by certain communities. It mandates that insured banks and thrifts provide equitable access to financial services, aligning with safe and sound operations. As part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Congress ordered the public disclosure of these evaluations for any bank or thrift examined since July 1, 1990.

Obtaining a consolidated list of all state nonmember banks evaluated under the CRA is as easy as visiting the FDIC’s Public Information Center. Individuals can also request a hard copy or access the information directly from any examined bank.

This disclosure is crucial for keeping the public informed about how financial institutions are serving their communities. It’s a clear reminder that compliance with the CRA isn’t just about meeting legal requirements; it’s about fulfilling a social responsibility. The FDIC stands ready to hold banks accountable, ensuring they play a positive role in the economic development of the areas they serve.

The list serves as a tool for both regulators and consumers to assess how well banks are addressing local needs. It underscores the importance of transparency in the banking sector and the ongoing effort by the FDIC to maintain the integrity of the financial system.

For more information or to obtain a copy of an individual bank’s CRA evaluation, contact the FDIC at (703) 470-0201.

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