Community Reinvestment Act Rules Approved
July 21, 2005
Circular No. 11722

To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The federal banking agencies have approved final Community Reinvestment Act (CRA) rules that are intended to reduce regulatory burden on community banks while making CRA evaluations more effective in encouraging banks to meet community development needs. The final rules are essentially as the agencies proposed them in March.

The final rules raise the small bank asset size threshold to assets of less than $1 billion without regard to holding company affiliation. Accordingly, the new rules reduce data collection and reporting burden for "intermediate small banks" (banks with assets between $250 million and less than $1 billion). The rules will also encourage meaningful community development lending, investment and services by these banks.

The rules, which are being issued jointly by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, take effect on September 1, 2005.

The agencies will have interim CRA examination procedures for intermediate small banks in place by August 1.

Press release Offsite
Draft of final rules Offsite pdf

Robert Gutierrez
Examining Officer
Legal and Compliance Risk Department