On May 5, 2022, the federal bank regulatory agencies issued a joint proposal to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law. CRA is a landmark law that encourages banks to help meet the credit needs of their local communities, including low- and moderate-income (LMI) neighborhoods, in a safe and sound manner.
The following are the key elements to the agencies’ joint proposal:
Expand access to credit, investment, and basic banking services in low- and moderate-income communities;
Adapt to changes in the banking industry, including internet and mobile banking;
Provide greater clarity, consistency, and transparency;
Tailor CRA evaluations and data collection to bank size and type; and
Maintain a unified approach.
The agencies are inviting public comment on their joint proposal, which will be open until August 5, 2022.
Read the agencies' joint press release here.
