§__.11(c)(3) Special Purpose Institution Exclusivity

§§__.11(c)(3) & 195.11(c)(2) – 1

Q: Is the list of special purpose institutions exclusive?

A1: No, there may be other examples of special purpose institutions. These institutions engage in specialized activities that do not involve granting credit to the public in the ordinary course of business. Special purpose institutions typically serve as correspondent banks, trust companies, or clearing agents or engage only in specialize services, such as cash management controlled disbursement services. A financial institution, however, does not become a special purpose institution merely by ceasing to make loans and, instead, making investments and providing other retail banking services.


Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016

Last modified April 28, 2023