Regulatory Bulletin 2.3-102 CRA Ratings Policy

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.

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

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

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.

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