CRA Flashcards
Which of the following institutions is exempt from the coverage of CRA?
a. State National Bank of Ashgrove, a $15 million bank in a rural community, not located in an MSA
b. Trust Company, Inc., an institution offering only trust services located in a large urban area
C. ACME Savings Association, a federal thrift institution located in a medium sized midwestern city, included in an MSA
d. First National Bank, a $250 million bank located in a rural area, not in an MSA
b. Trust Company, Inc., an institution offering only trust services located in a large urban area
Which of the following is NOT a requirement of CRA?
a. To delineate the bank’s assessment area(s)
b. To collect loan data
c. To approve the bank’s CRA statement at an annual board meeting
d. To report small business loan data
c. To approve the bank’s CRA statement at an annual board meeting
ABC National Bank, an independent, limited-purpose bank with $120 million in total assets located in a large urban area, is in the process of determining its option for its CRA evaluation. Unless the bank chooses otherwise, under which test will it be evaluated for CRA performance?
a. The intermediate small bank performance standards
b. The lending, investment, and service tests
c. The community development test
d. The lending test
c. The community development test
QRS State Bank is being examined under the lending test. Which of the following is the most relevant criteria for the lending test?
a. The distribution of the bank’s small business loans
b. The racial and gender characteristics of QRS’s lending staff
c. The location of QRS’s branches
d. The services QRS offers to its community
a. The distribution of the bank’s small business loans
Which of the following institutions could be examined for CRA under the intermediate small bank performance standard?
a. Bank A, a $230 million bank
b. Bank B, a $700 million bank
c. Bank C, a $50 million bank
d. Bank D, a $2 billion bank
b. Bank B, a $700 million bank
In the small bank performance standards, which of the following is NOT a criterion?
a. The bank’s CRA strategic plan
b. The bank’s loan-to-deposit ratio
c. The geographic distribution of loans
d. The percentage of loans within the bank’s assessment area(s)
a. The bank’s CRA strategic plan
Which of the following is true of a bank’s CRA strategic plan?
a. It must be limited to a one-year term
b. It must have interim measurable goals
c. Affiliates are required to have their own plans
d. Even if the bank has multiple assessment areas, it is only allowed to have one strategic plan duo
b. It must have interim measurable goals
A bank received a signed letter criticizing its performance in meeting the credit needs of the community, but not adversely reflecting upon any individual bank employee’s reputation. What must the bank do with this letter?
a. Have it reviewed and discussed by the board of directors
b. File it with the regional office of the bank’s federal regulator
c. Retain it in the CRA public comment file
d. Answer it within 10 business days
c. Retain it in the CRA public comment file
Which of the following criteria accurately describes a small business loan for which a large bank must annually report data?
a. A loan to a business that employs fewer than 50 people
b. A line of credit to a business with assets of less than $5 million
C. A loan with an original principal amount of $1 million or less to a business
d. A loan to a business that does not generally have access to regional or national credit markets
C. A loan with an original principal amount of $1 million or less to a business
Which of the following must a “large” bank maintain as part of its CRA public file?
a. A record of director, officer, and employee community involvement, and a listing of loans made to low- and moderate-income individuals
b. Description of its assessment area, written comments and responses, and the public portion of the regulator’s most recent CRA performance evaluation
c. Copy of the bank’s CRA Notice and the bank’s most recent five years of CRA disclosure statements
d. A comprehensive record of all CRA-related training completed by employees during the past two years
b. Description of its assessment area, written comments and responses, and the public portion of the regulator’s most recent CRA performance evaluation
A bank has been criticized by an examiner for less than satisfactory CRA performance. The bank must show improvement in its commitment to CRA. For the examiner, what would be LEAST effective in demonstrating the change?
a. Informing the examiner that the bank does not plan to acquire or merge with another bank, so CRA is not a priority
b. Giving the examiner an updated CRA public file
c. Showing the examiner a list of community groups with which the bank has met in the past 24 months to discuss credit needs
d. Showing the examiner results of the bank’s most recent geocoding analysis, indicating parity in the number of loans made in each census tract
a. Informing the examiner that the bank does not plan to acquire or merge with another bank, so CRA is not a priority
Which of the following is the best method for a large bank to use in monitoring its CRA performance?
a. Review the effectiveness of marketing materials
b. Evaluate approval and denial rates for minority loan applicants
c. Perform a quarterly evaluation of the bank’s loans-to-deposits ratio
d. Perform a geographic analysis of lending levels and dispersion of loans
d. Perform a geographic analysis of lending levels and dispersion of loans
In evaluating a bank’s CRA performance, to what do bank examiners give the greatest consideration?
a. Efforts to analyze the geographic origins of its deposit base
b. Efforts to establish communication with members of the community regarding credit needs
c. Participation of the bank’s board of directors in formulating CRA policy
d. Extensions of credit the bank has made where the financing benefits lowand moderate-income borrowers or neighborhoods
d. Extensions of credit the bank has made where the financing benefits lowand moderate-income borrowers or neighborhoods
What date must a bank other than small, intermediate, wholesale, or limited purpose bank, comply with most requirements of the new rule?
a. January 1, 2021
b. January 1, 2022
c. January 1, 2023
d. January 1, 2024
c. January 1, 2023
Fill in the blanks - Based on the 2020 thresholds, a bank with assets of more than , but less than in four of the previous five calendar quarters would be considered an intermediate bank under the new OCC rule.
a. $320 million & $1.31 billion
b. $600 million & $1.5 billion
c. $500 million and $2.5 billion
d. $600 million and $2.5 billion
d. $600 million and $2.5 billion
