CRA Limited Purpose, Strategic Plan, and Wholesale Institutions

Limited Purpose

A Limited purpose bank means a bank that offers only a narrow product line (such as credit card or motor vehicle loans) to a regional or broader market and for which a designation as a limited purpose bank is in effect, in accordance with § 345.25(b) of the CRA Regulation

Strategic Plans

For strategic plans, the FDIC evaluates the performance of a bank under a strategic plan if the bank submits, and the FDIC approves, a strategic plan as provided in § 345.27 of the CRA Regulation.

Wholesale Banks

A Wholesale bank is a bank that is not in the business of extending home mortgage, small business, small farm, or consumer loans to retail customers, and for which a designation as a wholesale bank is in effect, in accordance with § 345.25(b) of the CRA Regulation.

In order to receive a designation as a wholesale or limited purpose bank, a bank shall file a request, in writing, with the FDIC, at least three months prior to the proposed effective date of the designation. If the FDIC approves the designation, it remains in effect until the bank requests revocation of the designation or until one year after the FDIC notifies the bank that the FDIC has revoked the designation on its own initiative.

Refer to the Community Reinvestment Act Section of the FDIC Compliance Manual for additional information.