Posted By: Anonymous
Inside/Outside Ratio - 06/03/05 03:22 PM
I'm a seasoned CRA Officer and posting anonymously because I think I should know this answer but I can't figure it out.
I have many many many assessment areas, from huge Multi-State MSAs to small rural non-MSA areas. In previous exams, one Inside/Outside calculation was performed for the bank as a whole. In a more recent exam, the FRB performed an inside/outside calculation for each assessment area.
My question: How did they do that? I can calculate the number of loans made in a particular assessment area ("AA"), but what is the outside ratio? All other loans? That wouldn't make sense because some of them would be in another assessment area. Or, would the outside ratio be the same for each AA calculation, that being just all loans outside any of the assessment areas? Example: 25 loans inside AA#1. 30 loans inside AA#2. 10 loans outside any assessment area. Would the I/O calculation for AA#1 be 25/40? Or would it be 25/10? If the latter, then the I/O calculation for AA#2 be 30/10?
Aaarugh!! I know I could ask the regulator, but I don't want to. I'm losing sleep over this because I should be able to figure this out. Please help. I've ran out of under-eye cover.
I have many many many assessment areas, from huge Multi-State MSAs to small rural non-MSA areas. In previous exams, one Inside/Outside calculation was performed for the bank as a whole. In a more recent exam, the FRB performed an inside/outside calculation for each assessment area.
My question: How did they do that? I can calculate the number of loans made in a particular assessment area ("AA"), but what is the outside ratio? All other loans? That wouldn't make sense because some of them would be in another assessment area. Or, would the outside ratio be the same for each AA calculation, that being just all loans outside any of the assessment areas? Example: 25 loans inside AA#1. 30 loans inside AA#2. 10 loans outside any assessment area. Would the I/O calculation for AA#1 be 25/40? Or would it be 25/10? If the latter, then the I/O calculation for AA#2 be 30/10?
Aaarugh!! I know I could ask the regulator, but I don't want to. I'm losing sleep over this because I should be able to figure this out. Please help. I've ran out of under-eye cover.