Here.pdf

On October 24, 2023, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation issued a final rule to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law. The CRA encourages federally insured banks to help meet the credit needs of the communities in which they do business, especially low- and moderate-income (LMI) communities. The final rule updates the CRA regulations to achieve eight key objectives:

1. Strengthen the achievement of the core purpose of the statute by evaluating bank engagement with LMI individuals and communities and enhancing financial inclusion.
2. Adapt to changes in the banking industry, including the expanded role of mobile and online banking.
3. Provide greater clarity and consistency in the application of the regulations by adopting new metrics and benchmarks.
4. Tailor performance standards to account for differences in bank size, business models, and local conditions.
5. Tailor data collection and reporting requirements and use existing data whenever possible.
6. Promote transparency and public engagement by providing greater transparency for existing data and encouraging public comments.
7. Confirm that CRA and fair lending responsibilities are mutually reinforcing by prohibiting banks from delineating facility-based assessment areas that reflect illegal discrimination.
8. Promote a consistent regulatory approach that applies to banks regulated by all three agencies.