---
kind: "section"
citation: "12 C.F.R. § 228.31"
title: "12"
number: "228.31"
heading: "Effect of CRA performance on applications."
url: "https://uscodex.org/cfr/12/228.31"
---

# §228.31. Effect of CRA performance on applications.

- (a) **CRA performance.** Among other factors, the Board takes into account the record of performance under the CRA of:
  - (1) **Each applicant bank for the—**
    - (i) Establishment of a domestic branch by a State member bank; and
    - (ii) Merger, consolidation, acquisition of assets, or assumption of liabilities requiring approval under the Bank Merger Act ([12 U.S.C. 1828(c)](/usc/12/1828.md?p=c)) if the acquiring, assuming, or resulting bank is to be a State member bank; and
  - (2) Each insured depository institution (as defined in [12 U.S.C. 1813](/usc/12/1813.md)) controlled by an applicant and subsidiary bank or savings association proposed to be controlled by an applicant:
    - (i) To become a bank holding company in a transaction that requires approval under section 3 of the Bank Holding Company Act ([12 U.S.C. 1842](/usc/12/1842.md));
    - (ii) To acquire ownership or control of shares or all or substantially all of the assets of a bank, to cause a bank to become a subsidiary of a bank holding company, or to merge or consolidate a bank holding company with any other bank holding company in a transaction that requires approval under section 3 of the Bank Holding Company Act ([12 U.S.C. 1842](/usc/12/1842.md));
    - (iii) To own, control, or operate a savings association in a transaction that requires approval under section 4 of the Bank Holding Company Act ([12 U.S.C. 1843](/usc/12/1843.md));
    - (iv) To become a savings and loan holding company in a transaction that requires approval under section 10 of the Home Owners' Loan Act ([12 U.S.C. 1467a](/usc/12/1467a.md)); and
    - (v) To acquire ownership or control of shares or all or substantially all of the assets of a savings association, to cause a savings association to become a subsidiary of a savings and loan holding company, or to merge or consolidate a savings and loan holding company with any other savings and loan holding company in a transaction that requires approval under section 10 of the Home Owners' Loan Act ([12 U.S.C. 1467a](/usc/12/1467a.md)).
- (b) **Interested parties.** In considering CRA performance in an application described in [paragraph (a)](#a) of this section, the Board takes into account any views expressed by interested parties that are submitted in accordance with the Board's Rules of Procedure set forth in [12 CFR part 262](/cfr/12/part262.md).
- (c) **Denial or conditional approval of application.** A bank or savings association's record of performance may be the basis for denying or conditioning approval of an application listed in [paragraph (a)](#a) of this section.
- (d) **Definitions.** For purposes of [paragraphs (a)(2)(i) through (iii)](#a-2-i..a-2-iii) of this section, “bank,” “bank holding company,” “subsidiary,” and “savings association” have the same meanings given to those terms in section 2 of the Bank Holding Company Act ([12 U.S.C. 1841](/usc/12/1841.md)). For purposes of paragraphs [(a)(2)(iv)](#a-2-iv) and [(v)](#a-2-v) of this section, “savings and loan holding company” and “subsidiary” have the same meaning given to those terms in section 10 of the Home Owners' Loan Act ([12 U.S.C. 1467a](/usc/12/1467a.md)).

## Notes

### Authority

Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and 2901 et seq.

### Source

Source: Reg. BB, 89 FR 7188, Feb. 1, 2024, unless otherwise noted.