WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) isn’t known for making headlines about street crime, but its recent move to publicize a list of banks undergoing Community Reinvestment Act (CRA) evaluations is raising eyebrows in financial circles. The list, released November 3, 2023, details institutions examined in August, and while it doesn’t detail wrongdoing, it *does* open a window into how banks are meeting the credit needs of communities – particularly those often overlooked.
The CRA, a 1977 law, aims to push banks to invest in low- and moderate-income neighborhoods. It’s a paper tiger for some, a genuine effort for others, and the FDIC’s public disclosure, mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), is meant to hold banks accountable. But what does accountability look like when the ratings are publicly available, but the underlying data remains largely shielded from public view?
The agency released the “November 2023 List of Banks Examined for CRA Compliance”, a consolidated record of state nonmember banks evaluated since July 1, 1990. The FDIC is inviting the public to request a hard copy from its Public Information Center at 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226, reachable at 877-275-3342 or 703-562-2200. An individual bank’s full CRA evaluation is available directly from the bank itself, a legal requirement.
Grimy Times understands that the CRA evaluations aren’t about locking up bankers, but they *are* about ensuring fair access to capital. The FDIC’s move comes at a time when accusations of redlining and discriminatory lending practices are resurfacing across the nation. While the agency doesn’t point to specific infractions, the sheer act of shining a light on these evaluations is a signal – a signal that the FDIC is paying attention.
LaJuan Williams-Young, FDIC contact for media inquiries, can be reached at (703) 470-0201. The agency’s press release, dated November 3, 2023, emphasizes the importance of safe and sound operations alongside community investment. However, critics argue that the current system lacks teeth, and that public disclosure without meaningful enforcement is little more than a public relations exercise.
The full list of banks examined is available for public review, and Grimy Times will continue to monitor these evaluations, looking for patterns and potential red flags. This isn’t about headline-grabbing arrests; it’s about tracking the flow of money and ensuring that it reaches those who need it most. The question remains: will this transparency truly lead to a more equitable financial system, or will it simply become another bureaucratic footnote?
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