Big Picture
Opening a new branch creates many operational and regulatory challenges for banks of all sizes. Regulatory Risks in opening a new branch include the Community Reinvestment Act (CRA), which encourages institutions to invest in the communities in which they do business. When adding a branch, especially outside of the bank’s existing footprint, CRA Officers and banks must perform detailed analysis to be prepared for regulatory scrutiny.
Client Scenario
An OCC-regulated bank, facing a CRA exam in 2024, needed to ensure its existing CRA Strategic Plan positioned them for a successful review following a branch opening in a new geography. Asurity Advisors partnered with the bank to proactively prepare for the upcoming CRA exam. The bank also asked Asurity Advisors to analyze the bank’s CRA Strategic Plan relative to the current and proposed branch locations and identify implications thereof.
Asurity Solutions
Asurity Advisors meticulously evaluated the bank’s existing documents to ensure that they accurately reflected the bank’s efforts in meeting CRA requirements when contemplating this new branch. Asurity Advisors also reviewed the CRA Strategic Plan to determine the best course of action—whether to continue operating under the existing plan, develop a new CRA Strategic Plan, or modify the current one. This guidance ensured the bank adopted the most effective approach for achieving CRA compliance.
Asurity Advisors partnered with the bank to proactively prepare for the CRA exam. This proactive preparation minimized regulatory risk and ensured the bank continued serving its community effectively.