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The performance context is the “broad range of economic, demographic, and institution‐ and community‐specific information that an examiner reviews to understand the context in which an institution’s record of performance should be evaluated.” In practice, the performance context is a research‐based narrative that describes the environment in which the bank is conducting its Community Reinvestment Act (CRA) activities. Each bank and market is different, so the performance context allows examiners to qualify the local conditions and capacity that contribute to a bank’s CRA activities. This allows examiners to enforce the CRA regulations in a consistent manner across institutions and markets.
(source: Interagency Questions & Answers Regarding Community Reinvestment, §ll.21(b)—1. Federal Register, Vol. 75, No. 47, March 11, 2010. Available here.)
This Jargon Buster was contributed by the Federal Reserve Bank of San Francisco.
