The public is invited to comment on proposed revisions to the Community Reinvestment Act (CRA). Enacted in 1977, the CRA encourages depository institutions to help meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods.
The revisions are intended to reduce regulatory burden on community banks and make CRA evaluations more effective. Comments are due by May 10.
The Board's notice of proposed rulemaking is identical to proposals approved by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.
The proposal would:
The proposal addresses concerns expressed by the Board in 2004 when it withdrew a proposal to raise the small-bank threshold to $500 million. The Board expressed concern that the proposal was not certain to yield significant cost savings for banks, but might reduce community development capital in some rural communities. The current proposal would deliver greater cost savings while maintaining scrutiny of banks' community development records, though on a more flexible basis.
To submit comments to the Federal Reserve Board on the proposed revisions, identified by Docket No. R-1225, interested persons can use any of the following methods:
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FedCommunities.org is a portal to community development resources from all 12 Federal Reserve Banks and the Federal Reserve Board of Governors.