Small Bank Community Development Test

2121 Words May 13th, 2016 9 Pages
An intermediate small bank is also examined based on the small bank community development test. The community development test does not apply to a small bank that is not an intermediate small bank. The community development test is a four prong test including the following:
• The number and amount of community development loans;
• The number and amount of qualified investments;
• The extent to which the bank provides community development services; and
• The bank’s responsiveness through such activities to community development lending, investment and service needs.

WHOLESALE OR LIMITED PURPOSE BANKS
Wholesale or limited purpose banks are examined under a community development test that evaluates the bank’s record to help meet the credit needs of its assessment area(s) through its community development lending, qualified investments, or community development services.
The community development test includes the following criteria:
• The number and amount of community development loans, qualified investments, or community development services;
• The use of innovative or complex qualified investments, community development loans, or community development services, and the extent to which they are not provided by private investors; and
• The bank’s responsiveness to credit and community development needs.
At the bank’s option, an examiner will consider the qualified investments or community development services provided by the bank’s affiliates and community development…
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