What are examples of “Exam Method?
“Exam Method” refers to the procedures used to evaluate a bank’s CRA performance. Until the CRA regulations were revised in 1995, banks and thrifts were examined under twelve assessment factors. In 1995, the CRA regulations were substantially revised to put greater emphasis on performance, and to establish different evaluation tests for different kinds of institutions – large, small, wholesale and limited purpose banks and strategic plans. Streamlined procedures with an emphasis on lending were adopted for small institutions, while large banks are evaluated under a three-part lending, service and investment test. Wholesale and limited purpose banks are evaluated under a community development test. All institutions, no matter their size or business strategy, may take advantage of the strategic plan option, which allows an institution to develop a plan for meeting its CRA responsibilities, subject to approval by its supervisory agency. In 2005, the Board of Governors of the Federal Reser
