Q: § __.26(c)(3) – 1: What will examiners consider when evaluating the provision of community development services by an intermediate small institution?
A: In addition to the examples listed in Q&A § __.12(i) – 3, examiners will consider retail banking services as community development services if they provide benefit to low- or moderate-income individuals. Examples include:
• low-cost deposit accounts;
• electronic benefit transfer accounts and point of sale terminal systems;
• individual development accounts;
• free or low-cost government, payroll, or other check cashing services; and
• reasonably priced international remittance services.
In addition, providing services to low- and moderate-income individuals through branches and other facilities located in low- and moderate-income, designated disaster, or distressed or underserved nonmetropolitan middle-income areas is considered. Generally, the presence of branches located in low- and moderate-income geographies will help to demonstrate the availability of banking services to low- and moderate-income individuals.
This Interagency Q&A, and others, was released in July 2016.
The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately. They may be found here: http://www.ffiec.gov/cra/qnadoc.htm