Banking Agencies Seek Public Comment on CRA Proposal
This post is part of a series titled “Supervising Our Nation’s Financial Institutions.”
Last week, the three federal banking agencies—the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation—released an interagency proposal (PDF) that would revise banking regulations related to the Community Reinvestment Act (CRA). The CRA was passed in 1977 and the last major revisions to CRA regulations occurred almost 20 years ago.
The goals of this joint proposal are to both strengthen and modernize implementation of the CRA. It’s based on previous agency proposals, research conducted by the agencies and extensive feedback from various stakeholders. The agencies have opened a public comment period that will end on Aug. 5, 2022. The joint proposal’s major stated objectives are to:
The CRA was enacted 45 years ago to encourage banks to meet the credit needs of the communities they serve, including low- and moderate-income communities, in a safe and sound manner. While the goals of the CRA have not changed, the banking industry has changed significantly since 2005, when the last major revisions were made to CRA regulations. This proposal recognizes that CRA regulations need to evolve in order to address these industry changes.
Changes to regulations, especially regulations as significant as those related to CRA, are best made after robust public comment and engagement. I encourage all stakeholders to take advantage of the public comment period to ensure that the final rule that is ultimately crafted benefits from a diverse set of views and input.