Regulatory Bulletin  2.3-102 CRA Ratings Policy

Date:	10/02/2012
Referenced Sources:	G.L. c. 167, s. 14 209 CMR 46.00

1.0 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.

2.0 Component test ratings

A. 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

B. 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

3.0 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

4.0 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.

5.0 Authority

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