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F ederal R eser ve Ba nk o f D allas
DALLAS, TEXAS

75222
C irc u la r No. 79-14
Ja n u ary 22, 1979

REGULATION BB— CO M M UNITY REINVESTM ENT

TO ALL MEMBER BANKS
AND BANK HOLDING COMPANIES IN THE
ELEVENTH FEDERAL RESERVE D IS T R IC T :
Enclosed is the formal copy of Regulation BB, w hich was
effective Novem ber 6, 1978, implem enting the Community Reinvestm ent Act
(CRA) for state member b an ks. Each ban k must have a Community R einvest­
ment Act Statement p rep a re d by F e b ru a ry 4, 1979. In ad d itio n , the bank
must post a CRA N otice, a copy of w hich may be found in the R egulation, in
its lobby, and must establish a file to retain w ritte n comments received con­
cern in g its perform ance in meeting the c re d it needs of its local com m unity,
including low and moderate income neighborhoods.
Also enclosed only to member banks and others that m aintain
Regulations B inders is a d iv id e r tab fo r the new reg u latio n .
Questions concerning the Community Reinvestm ent A ct or Regu­
lation BB may be d irected to our Consumer A ffa irs Section, E x t. 6171.
A dditional copies of the pam phlet a n d /o r tab w ill be fu rn is h e d upon re ­
quest to the S e c re ta ry 's O ffice of this B an k, E x t. 6267.
S in ce re ly y o u rs ,
Robert H . Boykin
F irs t V ic e President
Enclosures

Banks and others are encouraged to use the follow ing incoming W A T S numbers in contacting this Bank:
1-8 0 0 -4 9 2 -4 4 0 3 (intrastate) and 1-8 0 0 -5 2 7 -4 9 7 0 (interstate). For calls placed locally, please use 651 plus
the extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

BOARD OF GOVERNORS
o f the

FEDERAL RESERVE SYSTEM

COMMUNITY REINVESTMENT

REGULATION BB
(12 CFR 228)
Effective November 6, 1978

CONTENTS
Page
S ec. 228.1— A u t h o r it y

3

.....................................................................................................................

S e c . 228.2— P u r p o s e s

.........................................................................................................

3

S e c . 228.3— D e l i n e a t i o n

of

Co

m m u n it y

Se c . 228.4— C o m m u n i t y R e i n v e s t m e n t A
Se c . 228.5— F il e s

of

Se c . 228.6— P u b l ic N
Se c . 228.7— A

4

......................

4

..........................................................................................................

4

and

m ent

R e c e n t C R A St a t e m

5

p p l i c a t i o n s ........................................................................................

6

.......................................................................................................................

7

I n t e r p r e t a t i o n s ................................................................................................................................

®

S e c . 228.8— E f f e c t
St a t u t o r y A

p p e n d ix

on

A

of

Perform

ents

........................................................

ss e ss in g t h e

R ecord

ct

St a t e

3

..................................................

P u b l ic C o m m e n t s

o t ic e

...............................................................................

ance

STATUTORY AUTHORITY
This regulation is based upon and issued pursuant to provisions o f section 806o f the C om m u n ity R e ­
investm ent A c t o f 1977, U .S .C ., T itle 12, sec. 2901 et seq.

REGULATION BB
(12 CRF 228)
Effective November 6, 1978

COMMUNITY REINVESTMENT
S E C T IO N 228.3— D E L I N E A T I O N O F

S E C T IO N 228.1— A U T H O R I T Y

C O M M U N IT Y
T h e B oard o f G o v e rn o rs o f the F ed eral R eserve
System issues this P art to im plem ent the C o m ­

(a ) E ach State m em ber bank shall prepare, and

2901

at least annually review , a delineation o f the local

et seq.). T h e regulations com p risin g this P a rt are

com m u n ity o r com m u nities that com prise its en­

issued

tire

m unity

R einvestm ent
under

the

A ct

(12

authority o f

U .S .C .
the

C om m u n ity

R einvestm ent A c t and under the provisions o f the

com m u nity,

m od erate-in com e

low -

and

shall be

used

duct exam inations o f State-chartered banks that
are m em bers o f the F ed era l R eserve System (12

b y F ed era l R eserve System exam iners.

to

conduct exam inations

of

bank

com m u n ity

M aps

reasonableness o f the delineations w ill be review ed

325),

p ortray

exclu ding

U n ite d States C o d e authorizing the B oard to c on ­

U .S .C .

to

w ith ou t

neighborhoods.

delineations.

The

( b ) A lo c a l com m u n ity consists o f the c o n tig ­

h old in g com panies and their subsidiaries (12 U .S .C .

uous areas surounding each office

1844), and to con sid er applications f o r dom estic

offices, including an y lo w - and m od erate-in com e

branches

neighborhoods in those areas. M o r e than one o f ­

321),

by

State

m em b er

banks

f o r F ed era l deposit insurance

(12

U .S.C .

in con n ec­

o r group o f

fice o f a State m em b er bank m ay be included in

the

the same local com m u nity. Unless the B oard d e­

F ed era l R eserve System b y State banks (12 U .S .C .

termines otherw ise, a com m u n ity delineation need

321,

not

tion

w ith

application s

1814,

1816),

fo r

fo r

m em bership

m erg er

in

in

w h ich

the

take account o f

an off-prem ises

electronic

be a State m em b er bank

fa c ility that receives deposits fo r m ore than one

(1 2 U .S .C . 1828), and f o r fo rm a tio n o f, acquisi­

d epository institution. In preparing its delineation,

resulting bank w ou ld

tions o f banks by, and m ergers o f, bank hold in g

a bank m ay use any one o f the three bases set

com panies (1 2 U .S .C . 1842).

fo rth below .
(1 ) E xisting boundaries such as those o f stand­
ard

m etropolitan

statistical

areas

(S M S A ’s)

or

counties in w hich the bank’s offic e o r offices are
S E C T IO N 228.2— P U R P O S E S

located

m ay be used to delineate a lo c a l c o m ­

m unity. W h e re appropriate, p ortion s o f adjacent
T h e purposes o f this regu lation are to encourage

areas should be included. T h e bank m ay m ake

State m em b er banks to help m eet the cred it needs

adjustments in the case o f areas d ivided b y State

o f th eir loca l com m u n ity o r com m unities; to p ro ­

borders or significant geograp h ic barriers, o r areas

v id e guidance to State m em ber banks as to h o w

that are extrem ely large o r o f unusual con figu ra­

the B oard w ill assess the records o f State m em ber

tion. In addition, a sm all bank m ay delineate those

banks in satisfyin g th eir continuing and affirm a­

portions o f S M S A ’s o r counties it reasonably m ay

tive ob ligation s to help m eet the cred it needs o f

be expected to serve.

and

(2 ) A bank m a y use its e ffe c tiv e lending terri­

m oderate-in com e neighborhoods, consistent w ith

tory, w h ich is defined as that loca l area o r areas

th eir

loca l

com m unities,

including

low -

the safe and sound op eration o f those banks; and

around each office or group o f offices w h ere it

to p ro v id e fo r takin g in to account those records

m akes a substantial p ortion o f its loans and all

in con nection w ith certain applications.

other areas equidistant fro m

its offices as those

REGULATION BB

§ 228.6
areas.

Adjustm ents

such

as those

indicated

in

(3 )

A

bank m ay

use any other reasonably-

delineated local area that meets the purposes o f
the

C om m u n ity

R einvestm ent

A ct

(C R A )

(1 ) A t the head office o f the bank; and
(2 ) A t each office o f the bank in the local c o m ­

paragraph (b )(1 ) o f this section m ay be made.

and

m unity

delineated in the Statement, except off-

prem ises electron ic deposit facilities.
(f)

C op ies o f each current C R A Statem ent shall

does not exclude low - and m oderate-in com e neigh­

be p rovided to the pu b lic upon request. A

borhoods.

m em b er bank m a y charge a fe e not to exceed the

State

cost o f reproduction.

S E C T IO N 228.5— F IL E S O F P U B L I C
S E C T IO N 228.4— C O M M U N I T Y R E I N V E S T ­
M ENT AC T STATEM ENT

STATEM ENTS

(a ) W ith in 90 days a fte r the effective date o f
this Part, the board

o f directors o f each State

m em ber bank shall adopt a C om m u n ity R ein vest­
m ent A c t ( C R A ) Statem ent fo r each delineated
loca l com m unity.
(b ) E ach C R A Statem ent shall include at least
the fo llo w in g :
(2 ) A list o f specific types o f credit w ith in cer­
tain categories, such as residential loans fo r l-to -4
fo r

5 d w ellin g

units and over, housing rehabilitation loans, hom e
im provem en t

loans,

small business loans,

farm

loans, com m u n ity developm en t loans, com m ercial
loans, and consum er loans, that the bank is pre­
pared to extend within the local com m u nity; and
(3 ) A co p y o f the C O M M U N I T Y R E I N V E S T ­
MENT

ACT

N O T IC E

p ro vid ed

fo r

in § 228.6.

(c ) E ach State m em ber bank is encouraged to
description o f

how

its current efforts,

including special credit-related program s, help to

m em b er

bank

shall m aintain

consisting o f:
(1 ) A n y signed, w ritten com m ents received fro m
the public w ith in the past tw o years that specifi­
c a lly relate to any C R A Statem ent or to*the bank’ s
its com m u n ity o r com m unities;
(2 ) A n y

responses to the com m ents that the

bank wishes to m ake; and
(3 ) A n y C R A Statements in effect during the
past tw o years.
(b ) T hese files shall not contain any com m ents
or responses that reflect ad versely upon the g o o d
nam e or reputation o f any person other than the
bank, o r publication o f w h ich w ou ld v io la te spe­
cific p rovisions o f law.
(c ) These

files

shall b e

m aintained

by

each

(1 ) A ll m aterials at the head office; and
(2 ) M aterials relating to each loca l com m u nity,
at a designated office in that com m u nity.

m eet com m u nity credit needs;
(2 ) A

State

State m em ber bank as fo llo w s :

include the fo llo w in g in each C R A Statement:
(1 ) A

(a ) Each

files that are readily available fo r public inspection

p erform an ce in h elp in g to m eet the credit needs o f

(1 ) T h e delineation o f the local com m u nity;

d w e llin g units, residential loans

CO M M ENTS A N D RECEN T C R A

p eriodic report regard in g its record o f

h elping to m eet com m u n ity cred it needs; and
(3 ) A description o f its efforts to ascertain the

S E C T IO N

228.6— P U B L IC N O T I C E

cred it needs o f its com m u nity, including efforts
to com m u nicate w ith m em bers o f its com m u nity
regard in g cred it services.
(d ) Each State m em ber bank’s board o f d irec­
tors

shall re v ie w each C R A

W ith in 90 days after the effective date o f this
Part, each State m em ber bank shall provide, in the

Statem ent at least

public lob b y o f each o f its offices other than offprem ises electronic

deposit

facilities, the public

annually and shall act upon any m aterial change

n otice set forth below . B racketed m aterial shall be

m ade in the interim at its first regular m eetin g

used on ly by banks havin g m ore than one local

after the change. Such actions shall be noted in

com m unity. T h e last item in this n otice shall be

its minutes.

included on ly if the bank is a subsidiary o f a h old ­

(e ) E ach

current

CRA

Statem ent

rea d ily availab le fo r public inspection:

shall

be

ing com pany that is not prevented by statute fro m
acquiring additional banks.

§ 228.7

REGULATION BB
C O M M U N IT Y

S E C T IO N

R E IN V E S T M E N T

A C T N O T IC E

228.7— A S S E S S IN G T H E

RECORD

OF PERFORM ANCE

T h e F ed eral C o m m u n ity R einvestm ent A c t

In con nection w ith its exam ination o f a State

(C R A ) requires the F ed era l R eserve Board

m em ber bank, the B oard shall assess the record

to evaluate our p erform an ce in h elping to

o f p erform an ce o f the bank in h elping to m eet

m eet the cred it needs o f this com m u nity,

the cre d it needs o f its entire com m u nity, including

and

low -

to

take

this evalu ation

into

account

and

m oderate-in com e

neighborhoods, c on ­

w h en the B oard decides on certain applica­

sistent w ith safe and sound operation o f the bank.

tions subm itted by us. Y o u r in vo lvem en t is

The

encouraged.

m e n ts ) and any signed, w ritten com m ents retained

w ill

rev ie w

the bank’s C R A

State­

by the State m em ber bank or the F ed era l R eserve

Y o u should k n o w that:
•You

B oard

Bank.

m ay obtain our current C R A State­

m ent fo r this com m u n ity in this office. [C u r­
rent C R A Statements fo r other com m unities
served b y us are available at our head office,

In

addition,

the B oard w ill consider the

fo llo w in g factors in assessing a bank’s record o f
perform an ce:
(a ) A c tiv itie s conducted by the State m em ber
bank to ascertain

the cred it needs o f its c o m ­

m unity, including the extent o f the bank’s efforts

located at (address).]

to com m u nicate w ith m em bers o f its com m u nity
• Y o u m ay send signed, w ritten com m ents

regard in g the cred it services b ein g p ro vid ed by

about ou r C R A

the bank;

form a n ce

in

S ta te m e n ts ] or ou r per­

h elping

to

m eet

com m u n ity

(b ) T h e extent

of

the

State

m em ber

bank’s

cred it needs to (title and address o f State

m arketin g and special credit-related program s to

m em ber bank offic ia l) and to C om m u n ity

m ake m em bers o f the com m u n ity aware o f the

R einvestm ent O fficer, F ed eral R eserve Bank

cred it services o ffe re d by the bank;

o f ----------------- (address).
gether w ith

Your

letter,

to ­

any response b y us, m ay be

(c ) T h e

extent o f

participation

by

the

State

m em ber bank’s board o f directors in form u latin g
the bank’s policies and re v ie w in g its p erform an ce

m ade public.

w ith respect to the purposes o f the C om m u n ity
• You

m ay

loo k

at a file

of

all signed,

R ein vestm en t A c t;

w ritten com m ents received by us w ith in the

(d ) A n y practices intended to discourage ap p li­

past 2 years, any responses w e have m ade

cations fo r types o f cred it set forth in the State

to the com m ents, and all C R A Statements in

m em ber bank’s C R A Statem ent(s);

e ffect during the past 2 years at our office

(e ) T h e

geograp h ic

distribution

of

the

State

located at (address). [Y o u also m ay lo o k at

m em b er bank’s cred it extensions, cred it ap p lica­

the file about this com m u n ity at (nam e and

tions, and credit denials;

address o f designated office).]
• You

( f ) E vid en ce

m ay ask to loo k at any com m ents

received

b y the F ed eral

R eserve Bank o f

of

proh ib ited

d iscrim inatory

or

oth er illegal credit practices;
(g ) T h e State m em b er bank’s record o f openin g
and closing offices and p ro v id in g services at offices;
(h ) T h e State m em b er bank’s participation, in­

• Y o u also m ay request fro m

the F ed eral

R eserve Bank o f _____________ an announce­
m ent o f applications covered by the C R A
filed with the Federal R eserve System.

clu d in g investm ents, in local com m u nity d e ve lo p ­
m ent and red evelop m en t projects or program s;
(i) T h e State m em b er bank’s origin ation o f resi­
dential

m ortga ge

loans,

housing

rehabilitation

• W e are a subsidiary o f (nam e o f holding

loans, hom e im provem en t loans, and sm all busi­

com p an y), a bank h old in g com pany. A p p li­

ness or small farm loans within its com m u nity, or

cations filed by bank h old in g com panies that

the purchase o f such loans originated in its co m ­

are covered by the C R A are included in the

m unity;

F ed eral R eserve announcem ent o f app lica­
tions referred to in the previou s paragraph.

( j) T h e

State m em b er bank’s participation in

g overn m entally-in siired, guaranteed, o r subsidized

REGULATION BB

§ 228.8
loan program s fo r housing, small businesses, or

m eetin g the cred it needs o f its entire com m u nity

small farms;

o f each applicant bank, each subsidiary bank o f

(k ) T h e State m em b er bank’s ab ility to m eet

an applicant bank

holding

com p any, and each

various com m u nity cred it needs based on its finan­

proposed subsidiary bank o f an applicant under

cial con dition

section 3 o f the B ank H o ld in g C om p a n y A c t (12

and size, and legal im pedim ents,

loca l econ o m ic conditions, and other factors; and
(1)

O th er factors that, in the B oard ’s judgm ent,

U .S .C .

1842) that has an officer, d irector,

em ­

p loyee, or significant stockholder associated w ith

reasonably bear upon the extent to w h ich a State

the applicant. T h o se records o f p erform a n ce m a y

m em b er bank is helping to m eet the cred it needs

be the basis f o r d enying the application.

o f its entire com m u nity.

(b) In the case o f each ap p lication f o r m em ­
bership that w ou ld c o n fe r F ed era l deposit insur­
ance, each ap p lication b y a State m em b er bank,

S E C T IO N 228.8— E F F E C T O N

and each ap plication b y a bank hold ing com p an y

A P P L IC A T IO N S

w ith a State bank subsidiary, the B oard w ill c on ­
sider any view s expressed by the respective State

(а ) In con sidering any application

bank supervisors as to w h ether the State-chartered
(1 ) F o r

m em bership

in

the

F ed eral

R eserve

System w here m em bership w ou ld c o n fe r F ed eral
deposit insurance on a bank,
m ent o f a dom estic branch o r other fa c ility that
w ou ld be authorized to rec e iv e deposits,
o f a dom estic branch,

or

resulting

acquisition

of

bank

is

to

be

a

State

m em ber bank,
(5 ) T o b ecom e a bank hold in g com p any, and
(б ) B y

a

bank

and

hold ing

com p an y

to

m od erate-in com e

neighborhoods,

those banks.

w ill include in its con sideration o f an ap plication
the reco rd

consolidation,

assets, or assumption o f liabilities if the acquiring,
assuming,

low -

consistent w ith the safe and sound op eration o f

(c ) A t the request o f an applicant, the B oard

(3 ) B y a State m em ber bank fo r the relocation
m erger,

have been h elping to m eet the

cred it needs o f their entire com m unities, includ­
ing

(2 ) B y a State m em ber bank fo r the establish­

(4 ) F o r

banks in vo lved

acquire

o f p e rfo rm a n c e o f nonbanking sub­

sidiaries o f bank h old in g com panies in h elping to
m eet the credit needs o f the com m unities served
by affiliated applicant banks o r b y subsidiary and
p roposed

subsidiary

banks

of

applicants

under

section 3 o f the Bank H o ld in g C o m p a n y A c t (12
U .S.C . 1842).

ow nership or con tro l o f shares o r assets o f a bank,
or to m erg e o r consolidate w ith any other bank
h old in g com pany,

(d ) A t the tim e an ap p lication fo r m em bership
that w ou ld c o n fe r
m ade,

the

F ed eral deposit insurance is

prop osed

State

m em b er

bank

shall

the B oard w ill take into account, am on g other

submit to the B oard a p roposed C R A Statem ent

factors it considers, the record o f p erform an ce in

co n fo rm in g to the requirem ents o f § 228.4.

STATUTORY APPENDIX
otherw ise requ ired under F ed era l la w or reg ­

S T A T U T O R Y A P P E N D IX

ulations thereunder fo r —

H ou sin g and C om m u n ity D e v elo p m e n t A c t

( A ) a charter fo r a national bank o r

P u b lic L a w 9 5 -1 2 8 , as am ended

F ed e ra l savings and loan association;

T IT L E V II I— C O M M U N IT Y R E IN V E S T M E N T

(B ) deposit

S ec. 801. This title m ay be cited as the “ C o m ­
m unity R einvestm ent A c t o f 1977” .
S e c . 802. ( a )

insurance

in

con nection

w ith a n e w ly chartered State bank, sav­
ings bank, savings and loan association

T h e C ongress finds that—

o r sim ilar institution;

(1 ) regulated financial institutions are re­

(C ) the establishm ent o f a dom estic

quired by la w to dem onstrate that their de­

branch o r oth er fa c ility w ith the ability

posit

to accept deposits o f a regulated finan­

facilities

serve

the

con ven ien ce

and

needs o f the com m u nities in w hich they are

cial institution;

chartered to do business;
(2 ) the

con ven ien ce

(D ) the relocation o f the hom e office

and

needs

of

com ­

o r a branch office o f a regulated financial

munities inclu de the need f o r credit services

institution;

as w e ll as deposit services; and
(3 ) regulated

financial

(E ) the m erger o r con solidation with,

institutions

have

o r the acquisition o f the assets, o r the

continuing and affirm ative ob lig atio n to help

assum ption o f the liabilities o f a regu ­

m eet the cred it needs o f the local com m u ni­

lated financial institution requirin g ap­
p roval under section 18(c) o f the F ed era l

ties in w hich they are chartered.
(b )

D ep osit Insurance A c t o r under regula­

It is the purpose o f this title to requ ire each

app rop riate F ed era l financial supervisory agency

tions issued under the authority o f title

to use its authority w hen exam in in g financial insti­

I V o f the N a tio n a l H ou sin g A c t; or

tutions, to encourage such institutions to help meet
the cred it needs o f the local com m u nities in w h ich

assets o f, a regulated financial institution

they are chartered

(F ) the acquisition o f shares in, o r the

consistent w ith the safe and

requ irin g ap p roval under section 3 o f the

sound op eration o f such institutions.

Bank H o ld in g C om p a n y A c t o f 1956 or

S e c . 803. F o r the purposes o f this title—

section 4 0 8 (e) o f the N a tio n a l H ou sin g

(1 ) the term “ app rop riate F ed eral financial

A c t.
(4 )
A finan cial institution w hose business

supervisory agen cy” means—
( A ) the C o m p tro ller o f the C u rren cy

p red om in a tely consists o f serving the needs

w ith respect to national banks;
(B ) the B oard o f

of

G ov e rn o rs o f the

m ilita ry personnel w h o

are not located

within a defined geograp h ic area m a y define

F ed era l R e se rv e System w ith respect to

its “ entire com m u n ity” to include its entire

State chartered banks w h ich are m em ­

deposit custom er base w ith ou t regard to g e o ­

bers o f the F ed era l R e serve System and

graph ic p roxim ity.

bank h old in g com panies;
(C ) the

F ed era l

S e c . 804. In con nection w ith its exam ination o f

D ep osit

Insurance

a

C o rp o ra tio n w ith respect to State char­
tered

banks

and

financial

institution,

the

appropriate

F ed eral

finan cial supervisory agency shall—

savings banks w hich

(1 ) assess the institution’s reco rd o f m eet­

are not m em bers o f the F ed eral R eserve

ing the cred it needs o f its entire com m u nity,

System and the deposits o f w h ich are in­

including low - and m od erate-in com e n eigh ­

sured b y the C orp o ra tion ; and

borhoods, consistent w ith the safe and sound

(D ) the

F ed era l

H om e

Loan

Bank

operation o f such institution; and

B oard w ith respect to institutions the d e­

(2 ) take such record

into account in its

posits o f w h ich are insured b y the F e d ­

evalu ation o f

eral Savings and L o a n Insurance C o r ­

fa c ility b y such institution.

poration and to savings and loan holding

Se c .

com panies;
(2 ) the
tio n ”

term

805. E ach

an application
appropriate

fo r

a deposit

F ed era l financial

supervisory agency shall include in its annual re­
“ regulated

financial

institu­

p ort to the C ongress a section ou tlining the actions

means an insured bank as defined in

it has taken to c a rry out its responsibilities under

section 3 o f the F ed eral D ep osit Insurance

this title.

A c t o r an insured institution as defined in

S e c . 806. R egu lation s to carry out the purposes

section 401 o f the N a tio n a l H ou sin g A c t; and

o f this title shall be published by each appropriate

(3 ) the

term

“ ap plication

fo r

a

F ed eral

deposit

financial

supervisory

agency,

and

shall

fa c ility ” means an ap plication to the ap p ro­

take e ffe c t no later than 390 days after the date o f

priate

enactm ent o f this title.

F ed eral

financial supervisory

agen cy

7

REGULATION BB-INTERPRETATION
B oard to encou rage banks to m eet the credit needs

C O M M U N IT Y R E IN V E S T M E N T

o f their local com m unities. T o this end, the B oard

IN T E R P R E T A T IO N S O F R E G U L A T IO N BB

m ust assess banks’ records o f p erform a n ce and
take those records into account in acting o n cer­
tain applications affectin g the banks. T h e B oard

SEC TIO N 228.1

b elieves

that these provision s w ere

intended to

c o v e r all banks that are in the business o f extend­
S E C T IO N 228.101— A P P L I C A B I L I T Y O F T H E

in g cred it to the public including both “ w h olesale”

C O M M U N IT Y R E IN V E S T M E N T A C T T O

and “ retail” banks. T h e lending activities o f these

C E R T A IN S P E C IA L P U R P O S E B A N K S

banks affect the econ o m ic health o f the com m u n i­
ties in w hich they are chartered. H o w e v e r , the

(a ) In response to its prop osed R egu la tion BB to
im plem ent

the

C om m u n ity

R einvestm ent

Act

B o a rd believes it w ou ld be pointless to encou rage
or to assess the credit-grantin g record o f institu­

re ­

tions that are not organ ized to grant cred it to the

that,

p ublic in the o rd in ary course o f business, other

although they are chartered as banks, d o not p er­

than as an incident to their specialized operations.

(“ C R A ” )
c e ive d

(1 2

several

U .S .C .

2 9 0 1 -0 5 ),

inquiries

fro m

the

B oard

institutions

fo rm com m ercial or retail banking services. These
institutions serve solely as correspondent banks, or

(c )

A c c o r d in g ly the term “ State m em b er bank”

as used in the B oard ’s R egu la tion BB (12 C F R

as trust com panies, o r as clearin g agents, and they

22 8) does not include banks that engage solely in

d o not extend cred it to the public fo r their ow n

correspon den t

account. T h e B oard concludes that the C R A is not

business, o r acting as a clearin g agent.

intended to c o v e r these institutions.

11/6/78

(b ) It is the purpose o f the C R A to requ ire the

banking

business,

trust com p an y


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102