GPS banks will be required to collect, maintain, and report certain data related to their qualifying activities, certain non-qualifying activities, retail domestic deposits, performance context, and assessment areas. Banks that elect the strategic plan option will be subject to performance standards that are tailored to the banks’ unique characteristics and needs. Banks with assets of $2.5 billion or less, as adjusted, may opt into the new GP standards. 5 GPS banks will be examined under the June 2020 rule’s new GP standards. Those performance standards generally continue the performance standards under the 1995 rule, as revised (1995 rule).

Small banks, intermediate banks, limited purpose banks, and wholesale banks will be examined based on the June 2020 rule’s performance tests and standards corresponding to their specific bank type.

The June 2020 rule retains a strategic plan option available to all types of banks. banks with assets greater than $2.5 billion, adjusted annually, and banks that opt into the general performance standards (GP standards or GPS banks) and.intermediate banks with assets greater than $600 million and less than or equal to $2.5 billion, adjusted annually.small banks with assets less than or equal to $600 million, adjusted annually 3.The June 2020 rule provides for different performance standards by bank type, which are deposit-based assessment areas, which apply to a bank with 50 percent or more of its retail domestic deposits outside its facility-based assessment areas.facility-based assessment areas based on the location of a bank’s main office and branches and, at a bank’s discretion, on the location of the bank’s deposit-taking automated teller machines.The rule also establishes new criteria for designating bank assessment areas, including The June 2020 rule establishes transparent criteria for qualifying retail and community development activities and provides for an illustrative list of activities that will receive CRA credit. Summary of Key Provisions of the June 2020 Rule The June 2020 rule provides new standards for evaluating bank performance and for collecting, maintaining, and reporting data used in the CRA evaluation process. The June 2020 rule preserves the important objective of encouraging banks to help meet the credit needs of their local communities, including low- and moderate-income neighborhoods, while responding to the significant changes and advancements in the banking industry since the CRA’s enactment in 1977 and the last comprehensive regulatory changes in 1995. This rule applies to community banks subject to the CRA.

June 2020 act answers