The Office of the Comptroller of the Currency (OCC) said Friday that of the 32 banks whose Community Reinvestment Act (CRA) ratings became public in May, 28 earned the rating of “satisfactory” and four were rated “outstanding.”
The four banks rated “outstanding” were Webster Bank, N.A., a large bank in Waterbury, Conn.; TD Bank USA, N.A., a limited-purpose bank in Wilmington, Del.; Queensborough National Bank & Trust Company, a large bank in Louisville Ga.; and New Buffalo Savings Bank, FSB, a small bank in New Buffalo, Mich.
Examinations under the CRA, enacted in 1977 in response to redlining, look at how well institutions are meeting their obligations to serve the communities where they are chartered to do business. Four ratings are possible: outstanding, satisfactory, needs to improve and substantial noncompliance. None of the banks in the May ratings list received a rating lower than satisfactory.
Banking regulators – the OCC, Federal Reserve Board and Federal Deposit Insurance Corp. (FDIC) – are contemplating changes to clarify and update the CRA rules. In its spring agenda, the OCC states this effort could ease burdens on banks and provide flexibility for meeting CRA obligations.
An advance notice of proposed rulemaking was expected in May and could be released at any time.
OCC Releases CRA Evaluations for 32 National Banks and Federal Savings Associations