CRA Ratings Announced

The agencies regularly post the results of CRA examinations and the ratings given to banks. The OCC just announced that all the recent CRA ratings are either Outstanding or Satisfactory. There were no Needs to Improve or Substantial Noncompliance. While this may be interpreted as an accomplishment on the part of the industry, don't lose sight of how others look at this. Historically, advocacy groups have used high rating curves to support allegations that the enforcement agencies are not taking CRA responsibilities seriously. Good ratings have an unfortunate tendency to raise the bar.

Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 1, 2/04