Of the 53 banks assigned ratings this April for compliance with the anti-redlining Community Reinvestment Act (CRA), three were deemed “outstanding” and the rest “satisfactory,” according to data released Friday.
This is based on the July list of banks receiving their CRA evaluation ratings from the Federal Deposit Insurance Corp. (FDIC). Banks rated “outstanding” included Passumpsic Savings Bank, Saint Johnsbury, Vt.; Fresno First Bank, Fresno, Calif.; and Pacific Western Bank, Beverly Hills, Calif.
None of the institutions reportedly rated in April received either of the other two ratings possible, “needs to improve” and “substantial noncompliance.”
The FDIC notes that the 1977 CRA is intended to encourage insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. Ratings are publicly disclosed under requirement of the 1989 Financial Institutions Reform, Recovery, and Enforcement Act of (FIRREA).