(a) In general.
(1) Based upon the criteria described in
paragraphs (b) and (c) of this section, a large bank must delineate
retail lending assessment areas within which the Board evaluates the
bank’s record of helping to meet the credit needs of its entire
community pursuant to section 228.22.
(2) A large bank is not required to delineate
retail lending assessment areas for a particular calendar year if,
in the prior two calendar years, the large bank originated or purchased
within its facility-based assessment areas more than 80 percent of
its home mortgage loans, multifamily loans, small business loans,
small farm loans, and automobile loans if automobile loans are a product
line for the large bank as described in paragraph II.a.1 of appendix
A to this part.
(3)
If, in a retail lending assessment area delineated pursuant to paragraph
(c) of this section, the large bank did not originate or purchase
any reported loans in any of the product lines that formed the basis
of the retail lending assessment area delineation pursuant to paragraph
(c)(1) or (2) of this section, the Board will not consider the retail
lending assessment area to have been delineated for that calendar
year.
(b) Geographic requirements
for retail lending assessment areas.
(1) A large bank’s retail lending
assessment area must consist of either:
(i) The entirety of
a single MSA (using the MSA boundaries that were in effect as of January
1 of the calendar year in which the delineation applies), excluding
any counties inside the large bank’s facility-based assessment
areas; or
(ii) All
of the counties in the nonmetropolitan area of a state (using the
MSA boundaries that were in effect as of January 1 of the calendar
year in which the delineation applies), excluding:
(A) Any counties
included in the large bank’s facility-based assessment areas;
and
(B) Any counties in
which the large bank did not originate any closed-end home mortgage
loans or small business loans that are reported loans during that
calendar year.
(2) A retail lending assessment area may
not extend beyond a state boundary unless the retail lending assessment
area consists of counties in a multistate MSA.
(c) Delineation of retail
lending assessment areas. Subject to the geographic requirements
in paragraph (b) of this section, a large bank must delineate, for
a particular calendar year, a retail lending assessment area in any
MSA or in the nonmetropolitan area of any state in which it originated:
(1) At least 150 closed-end home mortgage
loans that are reported loans in each year of the prior two calendar
years; or
(2) At least
400 small business loans that are reported loans in each year of the
prior two calendar years.
(d) Use of retail lending
assessment areas. The Board uses the retail lending assessment
areas delineated by a large bank in its evaluation of the bank’s
closed-end home mortgage lending and small business lending performance
unless the Board determines that the retail lending assessment areas
do not comply with the requirements of this section.
