On 1/29/2021, the OCC announced the availability of three things which apply to OCC-regulated institutions: the availability of the 2021 list of bank type determinations, the 2021 list of distressed and underserved areas, and the banking industry median hourly compensation value. This information applies to the OCC’s new CRA regulations that were published in the Federal Register on 6/5/2020. From their release, the OCC explains how the two lists and the determined compensation value apply:
“The list of bank type determinations identifies banks based on asset size or business model as either small bank, intermediate bank, wholesale bank, limited purpose bank, or a bank subject to the June 2020 rule’s general performance standards (GPS). A bank’s type generally determines the performance standards and related examination procedures used to evaluate that bank’s CRA performance.
The list of bank type determinations identifies banks based on asset size or business model as either small bank, intermediate bank, wholesale bank, limited purpose bank, or a bank subject to the June 2020 rule’s general performance standards (GPS). A bank’s type generally determines the performance standards and related examination procedures used to evaluate that bank’s CRA performance.
The list of distressed and underserved areas identifies middle-income census tracts where qualifying bank activities are eligible to receive CRA consideration under the June 2020 rule’s community development definition. The designations continue to reflect local economic conditions, including unemployment, poverty, and population changes.
The banking industry median hourly compensation value equals total salaries and benefits divided by full-time equivalent employees, based on aggregate Call Report data for September 2019 through June 2020. This compensation value is used for determining the dollar value of a community development (CD) service in evaluating CRA performance for activities conducted during 2021.
The criteria for determining bank type, designating distressed and underserved areas and calculating the banking industry median hourly compensation value will be made available on the OCC website.”
The OCC release, two lists, and the determined compensation value can be found here.