January's FDIC Community Reinvestment Action Examinations Show Healthy Lending

The FDIC conducts monthly Community Reinvestment Action (CRA) Examinations to determine whether or not banks are meeting their lending obligations in the communities they serve. The complete exam ratings are posted on the FDIC site.

But here is the cliff notes version:

O is Outstanding: The bank is exceeding expectations for lending in their area.

S is Satisfactory: The bank is meeting the expectations and lending well.

NI is Needs to Improvement: The bank is lending to the community but could do better.

SN is Substantial Non-compliance: An officer of the FDIC is probably on the phone.

What did the January 2009 report show?

click to enlarge

Source: FDIC

The detailed report shows East Bridgewater Saving Bank in East Bridgewater, MA needs some improvement and that the only bank reported as substantial non-compliant would be Reynolds State Bank in Reynold, IL.

So we've now established that no banks have failed since Dec 12, 2008.
Further, the snapshot FDIC lending exam shows banks on Main St. lending well. Credit crunch... where?

For those 151 worthy lenders out there who passed the examination this month: Bank On!

Comments

[Art Carney:]

The CRA notices from the FDIC do not mean what you think they do. All they do is acknowledge banks that are lending to all their local markets, not just the "rich" areas. Further, it acknowledges these banks are not taking advantage of their customers. So, to distill some information about lending or the quality of the loan portfolio is a joke.

Jan 14 08:12 AM

[Perki:]

If you were to gather the delinquency rate for the CRI loans made by these banks, you could draw a conclusion. Otherwise, not.

Jan 14 09:27 AM