(a) Retail Services and Products Test.
(1) In general. Pursuant to section 228.21, the Retail Services and Products Test
evaluates the availability of a bank’s retail banking services
and retail banking products and the responsiveness of those services
and products to the credit needs of the bank’s entire community,
including low- and moderate-income individuals, families, or households,
low- and moderate-income census tracts, small businesses, and small
farms. The Board evaluates the bank’s retail banking services,
as described in paragraph (b) of this section, and the bank’s
retail banking products, as described in paragraph (c) of this section.
(2) Main offices. For purposes of this section,
references to a branch also include a main office that is open to,
and accepts deposits from, the general public.
(3) Exclusion. If the Board considers services under the Community Development
Services Test in section 228.25, the Board does not consider those
services under the Retail Services and Products Test.
(b) Retail banking services.
(1) Scope of evaluation. To evaluate a bank’s retail banking
services, the Board considers a bank’s branch availability and
services provided at branches, remote service facility availability,
and digital delivery systems and other delivery systems, as follows:
(i) Branch availability and services. The Board considers
the branch availability and services provided at branches of banks
that operate one or more branches pursuant to paragraph (b)(2) of
this section.
(ii) Remote service facility availability. The Board considers the
remote service facility availability of banks that operate one or
more remote service facilities pursuant to paragraph (b)(3) of this
section.
(iii) Digital delivery systems and other delivery systems. The Board
considers the digital delivery systems and other delivery systems
of banks pursuant to paragraph (b)(4) of this section, as follows:
(A) The Board considers the digital delivery systems and other delivery
systems of the following banks:
(1) Large banks that had assets greater than $10 billion as
of December 31 in both of the prior two calendar years; and
(2) Large banks that
had assets less than or equal to $10 billion as of December 31 in
either of the prior two calendar years and that do not operate branches.
(B) For a
large bank that had assets less than or equal $10 billion as of December
31 in either of the prior two calendar years and that operates at
least one branch, the Board considers the bank’s digital delivery
systems and other delivery systems at the bank’s option.
(2) Branch availability and services. The Board evaluates a bank’s branch availability and services
in a facility-based assessment area based on the following:
(i) Branch
distribution. The Board considers a bank’s branch distribution
using the following:
(A) Branch distribution metrics. The
Board considers the number and percentage of the bank’s branches
within low-, moderate-, middle-, and upper-income census tracts.
(B) Benchmarks. The
Board’s consideration of the branch distribution metrics is
informed by the following benchmarks:
(1) Percentage of census tracts in the facility-based assessment
area that are low-, moderate-, middle-, and upper-income census tracts;
(2) Percentage of
households in the facility-based assessment area that are in low-,
moderate-, middle-, and upper-income census tracts;
(3) Percentage of total businesses
in the facility-based assessment area that are in low-, moderate-,
middle-, and upper-income census tracts; and
(4) Percentage of all full-service
depository institution branches in the facility-based assessment area
that are in low-, moderate-, middle-, and upper-income census tracts.
(C) Additional
geographic considerations. The Board considers the availability
of branches in the following geographic areas:
(1) Middle- and upper-income census
tracts in which a branch delivers services to low- and moderate-income
individuals, families, or households to the extent that these individuals,
families, or households use the services offered;
(2) Distressed or underserved nonmetropolitan
middle-income census tracts; and
(3) Native land areas.
(ii) Branch openings and closings. The Board considers a bank’s
record of opening and closing branches since the previous CRA examination
to inform the degree of accessibility of services to low- and moderate-income
individuals, families, or households, small businesses, and small
farms, and low- and moderate-income census tracts.
(iii) Branch hours of operation and
services. The Board considers the following:
(A) The reasonableness
of branch hours in low- and moderate-income census tracts compared
to middle- and upper-income census tracts, including, but not limited
to, whether branches offer extended and weekend hours.
(B) The range of services provided
at branches in low-, moderate-, middle-, and upper-income census tracts,
respectively, including, but not limited to:
(1) Bilingual and translation services;
(2) Free or low-cost
check cashing services, including, but not limited to, check cashing
services for government-issued and payroll checks;
(3) Reasonably priced international
remittance services; and
(4) Electronic benefit transfers.
(C) The degree to which branch-provided
retail banking services are responsive to the needs of low- and moderate-income
individuals, families, or households in a bank’s facility-based
assessment areas.
(3) Remote service
facility availability. The Board evaluates a bank’s remote
service facility availability in a facility-based assessment area
based on the following:
(i) Remote service facility distribution. The Board considers a bank’s remote service facility distribution
using the following:
(A) Remote service facility distribution
metrics. The Board considers the number and percentage of the
bank’s remote service facilities within low-, moderate-, middle-,
and upper-income census tracts.
(B) Benchmarks. The Board’s consideration
of the remote service facility distribution metrics is informed by
the following benchmarks:
(1) Percentage of census tracts in the facility-based assessment
area that are low-, moderate-, middle-, and upper-income census tracts;
(2) Percentage of
households in the facility-based assessment area that are in low-,
moderate-, middle-, and upper-income census tracts; and
(3) Percentage of total
businesses in the facility-based assessment area that are in low-,
moderate-, middle-, and upper-income census tracts.
(C) Additional geographic
considerations. The Board considers the availability of remote
service facilities in the following geographic areas:
(1) Middle- and upper-income census
tracts in which a remote service facility delivers services to low-
and moderate-income individuals, families, or households to the extent
that these individuals, families, or households use the services offered;
(2) Distressed or
underserved nonmetropolitan middle-income census tracts; and
(3) Native land areas.
(ii) Access to out-of-network ATMs. The Board considers whether the bank offers customers fee-free access
to out-of-network ATMs in low- and moderate-income census tracts.
(4) Digital delivery systems and other delivery
systems. The Board evaluates the availability and responsiveness
of a bank’s digital delivery systems and other delivery systems,
including to low- and moderate-income individuals, families, or households
at the institution level by considering:
(i) The range of retail
banking services and retail banking products offered through digital
delivery systems and other delivery systems;
(ii) The bank’s strategy and initiatives
to serve low- and moderate-income individuals, families, or households
with digital delivery systems and other delivery systems as reflected
by, for example, the costs, features, and marketing of the delivery
systems; and
(iii)
Digital delivery systems and other delivery systems activity by individuals,
families or households in low-, moderate-, middle-, and upper-income
census tracts as evidenced by:
(A) The number of checking and
savings accounts opened each calendar year during the evaluation period
digitally and through other delivery systems in low-, moderate-, middle-,
and upper-income census tracts;
(B) The number of checking and savings accounts
opened digitally and through other delivery systems and that are active
at the end of each calendar year during the evaluation period in low-,
moderate-, middle-, and upper-income census tracts; and
(C) Any other bank data that
demonstrates digital delivery systems and other delivery systems are
available to individuals and in census tracts of different income
levels, including low- and moderate-income individuals, families,
or households and low- and moderate-income census tracts.
(c) Retail banking products evaluation.
(1) Scope of evaluation. The Board evaluates a bank’s retail
banking products offered in the bank’s facility-based assessment
areas and nationwide, as applicable, at the institution level as follows:
(i) Credit products and programs. The Board evaluates a bank’s
credit products and programs pursuant to paragraph (c)(2) of this
section.
(ii) Deposit
products. The Board evaluates a bank’s deposit products
pursuant to paragraph (c)(3) of this section as follows:
(A) For large
banks that had assets greater than $10 billion as of December 31 in
both of the prior two calendar years; and
(B) For large banks that had assets less than
or equal to $10 billion as of December 31 in either of the prior two
calendar years, the Board considers a bank’s deposit products
only at the bank’s option.
(2) Credit products and programs. The Board evaluates whether a
bank’s credit products and programs are, consistent with safe
and sound operations, responsive to the credit needs of the bank’s
entire community, including the needs of low- and moderate-income
individuals, families, or households, residents of low- and moderate-income
census tracts, small businesses, or small farms. Responsive credit
products and programs may include, but are not limited to, credit
products and programs that:
(i) Facilitate home
mortgage and consumer lending targeted to low- or moderate-income
borrowers;
(ii) Meet
the needs of small businesses and small farms, including small businesses
and small farms with gross annual revenues of $250,000 or less;
(iii) Are conducted
in cooperation with MDIs, WDIs, LICUs, or CDFIs;
(iv) Are low-cost education loans; or
(v) Are special purpose
credit programs pursuant to 12 CFR 1002.8.
(3) Deposit products. The Board evaluates the availability and usage
of a bank’s deposit products responsive to the needs of low-
and moderate-income individuals, families, or households as follows:
(i) Availability of deposit products responsive to the needs of
low- and moderate-income individuals, families, or households. The Board considers the availability of deposit products responsive
to the needs of low- and moderate-income individuals, families, or
households based on the extent to which a bank offers deposit products
that, consistent with safe and sound operations, have features and
cost characteristics responsive to the needs of low- and moderate-income
individuals, families, or households. Deposit products responsive
to the needs of low- and moderate-income individuals, families, or
households include but are not limited to, deposit products with the
following types of features:
(A) Low-cost features, including,
but not limited to, deposit products with no overdraft or insufficient
funds fees, no or low minimum opening balance, no or low monthly maintenance
fees, or free or low-cost check-cashing and bill-pay services;
(B) Features facilitating
broad functionality and accessibility, including, but not limited
to, deposit products with in-network ATM access, debit cards for point-of-sale
and bill payments, and immediate access to funds for customers cashing
government, payroll, or bank-issued checks; or
(C) Features facilitating inclusivity of access
by individuals without banking or credit histories or with adverse
banking histories.
(ii) Usage of deposit products responsive
to the needs of low- and moderate-income individuals. The Board
considers the usage of a bank’s deposit products responsive
to the needs of low- and moderate-income individuals, families, or
households based on the following information:
(A) The number
of responsive deposit accounts opened and closed during each year
of the evaluation period in low-, moderate-, middle-, and upper-income
census tracts;
(B) In connection
with paragraph (c)(3)(ii)(A) of this section, the percentage of responsive
deposit accounts compared to total deposit accounts for each year
of the evaluation period;
(C) Marketing, partnerships, and other activities that the bank has
undertaken to promote awareness and use of responsive deposit accounts
by low- and moderate-income individuals, families, or households;
and
(D) Optionally, any
other information the bank provides that demonstrates usage of the
bank’s deposit products that have features and cost characteristics
responsive to the needs of low- and moderate-income individuals, families,
or households and low- and moderate-income census tracts.
(d) Retail Services and Products Test performance conclusions and ratings.
(1) Conclusions. Pursuant to section 228.28 and appendix C to this
part, the Board assigns conclusions for a bank’s Retail Services
and Products Test performance in each facility-based assessment area,
state and multistate MSA, as applicable, and for the institution.
In assigning conclusions under this performance test, the Board may
consider performance context information as provided in section 228.21(d).
The evaluation of a bank’s retail banking products under paragraph
(c) of this section may only contribute positively to the bank’s
Retail Services and Products Test conclusion.
(2) Ratings. Pursuant to section 228.28 and appendix D to this part, the Board
incorporates a bank’s Retail Services and Products Test conclusions
into its state or multistate MSA ratings, as applicable, and its institution
rating.
