3.2: Institutional Compliance
FDIC-supervised institutions comply with consumer protection, CRA and fair lending laws. Other Information:
Means & Strategies: The FDIC participates in various outreach activities and provides technical assistance to the institutions
it supervises and to community-based organizations. These activities facilitate their understanding of, and compliance with,
CRA and fair lending laws and regulations. The compliance and CRA examination process evaluates FDIC-supervised institutions’
practices regarding consumer protection, CRA, fair lending laws and regulations, and consumer privacy. In addition to the
examination process, the FDIC investigates consumer complaints about unfair or deceptive practices. Non-compliance with consumer
laws can result in civil liability and negative publicity as well as informal or formal enforcement actions by the FDIC to
correct the identified violations. An institution’s compliance with consumer protection, CRA and fair lending laws and regulations
is considered when an institution seeks to engage in new or expanded activities. External Factors: If a severe economic downturn
resulted in an increased number of troubled institutions, the FDIC might have to reallocate its examiner resources to enable
it to respond adequately to safety and soundness issues posed by troubled institutions. This could result in temporary adjustments
to the FDIC’s various examination programs, including its compliance and CRA examinations.
Indicator(s):
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