IDEAS home Printed from https://ideas.repec.org/a/fip/fedgrb/y2005isprp202-235nv.91no.2.html
   My bibliography  Save this article

Community banks and rural development: research relating to proposals to revise the regulations that implement the Community Reinvestment Act

Author

Listed:
  • Robert B. Avery
  • Glenn B. Canner
  • Shannon C. Mok
  • Dan S. Sokolov

Abstract

Since 1977, the Community Reinvestment Act (CRA) has required that federally insured banking institutions be evaluated on their records of helping to meet the credit needs of their local communities. In 1995, the agencies responsible for bank supervision substantially revised the regulations that implement the CRA. The revisions were intended to emphasize performance rather than process, to reduce unnecessary regulatory burden, and to increase consistency in CRA evaluations. Since 1995, "large" institutions, generally those with assets of $250 million or more, have been evaluated under a three-part test, whereas "small" institutions, generally those with assets of less than $250 million, have been subject to comparatively streamlined evaluations. ; In 2004 and 2005, the agencies put forth several proposals to extend the eligibility for streamlined examinations and an exemption from data reporting to more institutions by raising the asset-size threshold from $250 million to $500 million or $1 billion. A related issue that the agencies raised was how to define which bank activities in rural areas should be considered community development in CRA evaluations. In this article, the authors, having evaluated data to gain insight into the potential effects of these proposals, report the findings of their research.

Suggested Citation

  • Robert B. Avery & Glenn B. Canner & Shannon C. Mok & Dan S. Sokolov, 2005. "Community banks and rural development: research relating to proposals to revise the regulations that implement the Community Reinvestment Act," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Spr, pages 202-235.
  • Handle: RePEc:fip:fedgrb:y:2005:i:spr:p:202-235:n:v.91no.2
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/bulletin/2005/spring05_research.pdf
    Download Restriction: no

    More about this item

    Keywords

    Community Reinvestment Act of 1977;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgrb:y:2005:i:spr:p:202-235:n:v.91no.2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (FRB Librarian). General contact details of provider: http://edirc.repec.org/data/frbgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.