Wholesale and Limited Purpose Banks under the Community Reinvestment Act (CRA)

As of January 1, 2019

Under the Community Reinvestment Act, a bank may apply to its primary federal regulator to be designated a wholesale or a limited purpose bank. Such banks are evaluated for performance under standards found at 12 CFR 25.25. The regulation offers the following definitions:

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.

Wholesale bank means 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.

Limited Purpose Banks

* Also operates under a CRA Strategic Plan.

Wholesale Banks by the OCC