3 CRR-NY 76.13NY-CRR
3 CRR-NY 76.13
3 CRR-NY 76.13
76.13 Strategic plan.
(a) Alternative election.
The department will assess a banking institution's record of helping to meet the credit needs of its assessment area(s) under a strategic plan if:
(1) the banking institution has submitted the plan to the department as provided for in this section;
(2) the department has approved the plan;
(3) the plan is in effect; and
(4) the banking institution has been operating under an approved plan for at least one year.
(b) Data reporting.
The department's approval of a plan does not affect the banking institution's obligation, if any, to report other required data.
(c) Plans in general.
(1) Term. A plan may have a term of no more than five years, and any multi-year plan must include annual interim measurable goals under which the department will evaluate the banking institution's performance.
(2) Multiple assessment areas. A banking institution with more than one assessment area may prepare a single plan for all of its assessment areas or one or more plans for one or more of its assessment areas.
(3) Treatment of affiliates. Affiliated institutions may prepare a joint plan if the plan provides measurable goals for each institution. Activities may be allocated among institutions at the institutions' option, provided that the same activities are not considered for more than one institution.
(d) Public participation in plan development.
Before submitting a plan to the department for approval, a banking institution shall:
(1) informally seek suggestions from members of the public in its assessment area(s) covered by the plan while developing the plan;
(2) once the banking institution has developed a plan, formally solicit public comment on the plan for at least 30 days by publishing notice in at least one newspaper of general circulation in each assessment area covered by the plan; and
(3) during the period of formal public comment, make copies of the plan available for review by the public at no cost at all offices of the banking institution in any assessment area covered by the plan and provide copies of the plan upon request for a reasonable fee to cover copying and mailing, if applicable.
(e) Submission of plan.
The banking institution shall submit its plan to the department at least three months prior to the proposed effective date of the plan. The banking institution shall also submit with its plan a description of its informal efforts to seek suggestions from members of the public, any written public comment received, and, if the plan was revised in light of the comment received, the initial plan as released for public comment.
(f) Plan content.
The content of the plan shall be as follows:
(1) Measurable goals.
(i) A banking institution shall specify in its plan measurable goals for helping to meet the credit needs of each assessment area covered by the plan, particularly the needs of low- and moderate-income geographies, low- and moderate- income individuals, and minority- and women-owned businesses, through lending, investment, and services, as appropriate.
(ii) A banking institution shall address in its plan all three performance categories and, unless the banking institution has been designated as a wholesale or limited purpose banking institution, shall emphasize lending and lending-related activities. Nevertheless, a different emphasis, including a focus on one or more performance categories, may be appropriate if responsive to the characteristics and credit needs of its assessment area(s), considering public comment and the banking institution's capacity and constraints, product offerings, and business strategy.
(2) Confidential information. A banking institution may submit additional information to the department on a confidential basis, but the goals stated in the plan must be sufficiently specific to enable the public and the department to judge the merits of the plan.
(3) Satisfactory and outstanding goals. A banking institution shall specify in its plan measurable goals that constitute “satisfactory” performance. A plan may specify measurable goals that constitute “outstanding” performance. If a banking institution submits, and the department approves, both “satisfactory” and “outstanding” performance goals, the department will consider the banking institution eligible for an “outstanding” performance rating.
(4) Election if satisfactory goals not substantially met. A banking institution may elect in its plan that, if the banking institution fails to meet substantially its plan goals for a satisfactory rating, the department will evaluate the banking institution's performance under the lending, investment, and service tests, the community development test, or the small banking institution performance standards, as appropriate.
(g) Plan approval.
Approval of a plan shall be as follows:
(1) Timing. The department will act upon a plan within 60 calendar days after receipt of the complete plan and other material required under subdivision (e) of this section. If the department fails to act within this time period, the plan shall be deemed approved unless the department extends the review period for good cause.
(2) Public participation. In evaluating the plan's goals, the department considers the public's involvement in formulating the plan, written public comment on the plan, and any response by the banking institution to public comment on the plan.
(3) Criteria for evaluating plan. The department evaluates a plan's measurable goals using the following criteria, as appropriate:
(i) the extent and breadth of lending or lending-related activities, including, as appropriate, the distribution of loans among different geographies, businesses and farms of different sizes, and individuals of different income levels, the extent of lending to minority- and women-owned businesses, the extent of community development lending, and the use of innovative or flexible lending practices to address credit needs;
(ii) the amount and innovativeness, complexity, and responsiveness of the banking institution's qualified investments; and
(iii) the availability and effectiveness of the banking institution's systems for delivering retail banking services and the extent and innovativeness of the banking institution's community development services.
(h) Plan amendment.
During the term of a plan, a banking institution may request the department to approve an amendment(s) to the plan on grounds that there has been a material change in circumstances. The banking institution shall develop an amendment(s) to a previously approved plan in accordance with the public participation requirements of subdivision (d) of this section.
3 CRR-NY 76.13
Current through January 31, 2023
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