Asset classifications Taking this a step further, now might be a good time to review the definitions and usages of asset classifications. Right now, the definition of a substandard loan encompasses a broad range of assets, many of which will never sustain a loss.
Last year, the Fed issued a proposal for a strengthened, modernized CRA framework, with the objective of building broad support among both external stakeholders and participating agencies. Our goal is to strengthen the core purpose of meeting the credit needs of low- and moderate-income communities. We especially appreciated NCRC’s feedback on the proposal.