Guest Commentary By Carl White, Federal Reserve Bank of St. Louis
In early May, the three federal banking agencies—the Federal Te CRA was passed in 1977, and the last major revisions to CRA regulations occurred almost 20 years ago.
Bank Agencies Seek Comments on CRA Proposal
PROPOSAL’S OBJECTIVES Te goals of this joint proposal (
federalreserve.gov/consumers communities/files/cra-npr-f-notice-20220505.pdf) 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. Te agencies have opened a public comment period (federalreserve. gov/secure/forms/
ElectronicCommentForm.aspx?doc_id=R- 1769&doc_ver=1) that ends Aug. 5.
Te joint proposal’s major stated objectives follow. • Expand access to credit, investment and basic banking services in low- and moderate-income communities. Bank performance would be evaluated across a range of activities and communities. Te proposal promotes community engagement and financial inclusion, enhances data disclosures and emphasizes small-dollar loans and investments that can have high impact.
• Adapt to changes in the banking industry, including internet and mobile banking. Update CRA assessment areas to reflect activities associated with online and mobile banking, branchless banking and hybrid models (for example, a bank with a physical footprint and online lending). Te proposal updates assessment areas while maintaining a focus on branch-based assessment areas and proposes a tailored assessment area approach.
• Provide greater clarity, consistency and transparency. Te proposal introduces a metrics-based approach to CRA evaluations of retail lending and community development
24
mobankers.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32
