Wholesale and Limited Purpose Banks beneath the grouped community Reinvestment Act (CRA)

Wholesale and Limited Purpose Banks beneath the grouped community Reinvestment Act (CRA)

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At the time of 1, 2020 january

A bank may apply to its primary federal regulator to be designated a wholesale or a limited purpose bank under the Community Reinvestment Act. Such banking institutions are examined for performance under criteria bought at 12 CFR 25.25. The legislation provides the after definitions:

Restricted function bank means a bank that provides just a narrow brand (such as for instance charge card or automobile loans) to a local or wider market as well as for which a designation as a finite function bank is in effect.

Wholesale bank means a bank that’s not in the commercial of expanding home loan, business, little farm, or customer loans to retail clients, as well as for which a designation as a wholesale bank is within effect.…