On September 21st, members of the Federal Reserve Board voted to issue an advanced notice of proposed rule making to solicit public input on modernizing and strengthening the Community Reinvestment Act (CRA) regulatory and supervisory framework. Specifically, the intent of the rule making is to:
- “modernize the CRA’s assessment areas and define local communities for CRA evaluations while accounting for bank size;
- lay out a metric-based CRA evaluation framework with sperate retail and community development tests, where each test would comprise separate financing and service subtests, that is tailored based on the bank’s asset size and business models;
- update and clarify which community development activities are eligible for CRA consideration in an assessment of a bank’s CRA performance; and
- revise CRA data collection and reporting requirements to avoid potential data burden implications”
This announcement follows OCC publication of updates to the CRA without support from the Federal Reserve Board nor the FDIC.