By the Division of Banks
  1. APPLICABILITY AND SCOPE

    The purpose of this bulletin is to elaborate on the methodology to be used by the Division of Banks (Division) when assigning ratings on the lending, service, and investment tests as part of the Community Reinvestment Act (CRA) examination for both large banks and large credit unions as defined in the regulation. In addition, this policy describes the number of points needed to achieve each of the five descriptive CRA ratings: Outstanding, High Satisfactory, Satisfactory, Needs to Improve, and Substantial Noncompliance.

  2. COMPONENT TEST RATINGS
    1. Bank Component Test Ratings

      The following matrix sets forth the methodology for aggregating a bank’s scores on the lending, service, and investment tests to arrive at an assigned rating.

      Component Test Ratings

      Lending

      Service

      Investment

      Outstanding

      12

      6

      6

      High Satisfactory

      9

      4

      4

      Satisfactory

      6

      3

      3

      Needs to Improve

      3

      1

      1

      Substantial Noncompliance

      0

      0

      0

    2. Credit Union Component Test Ratings

      The following matrix sets forth the methodology for aggregating a credit union’s scores on the lending and service tests to arrive at an assigned rating.

      Component Test Ratings

      Lending

      Service

      Outstanding

      15

      9

      High Satisfactory

      11

      6

      Satisfactory

      8

      4

      Needs to Improve

      4

      1

      Substantial Noncompliance

      0

      0

  3. COMPOSITE RATINGS

    The number of points needed for institutions to achieve each of the five composite assigned ratings is shown below:

    Points

    Composite Assigned Rating

    20 or over

    Outstanding

    17 through 19

    High Satisfactory

    11 through 16

    Satisfactory

    5 through 10

    Needs to Improve

    0 through 4

    Substantial Noncompliance

  4. HISTORICAL NOTES

    This bulletin replaced former Administrative Bulletin 5-11 issued on July 1, 1997. Minor changes were made in 2012 to clarify applicability. The bulletin was revised on October 2, 2012.

  5. AUTHORITY

    G.L. c. 167, s. 14; 209 CMR 46.00.