Community Reinvestment Act regulations and evaluations should be tailored to banks based on their size and business strategy, Federal Reserve Governor Lael Brainard said. Speaking in Washington on CRA reform, Brainard said small banks could have their lending and retail services evaluated under the retail test, while larger banks could be evaluated under both the retail and community development tests.
Regulators are discussing CRA reform following the OCC’s August 2018 advance notice of proposed rulemaking. ICBA’s November letter to the OCC called on regulators to improve CRA consistency and transparency and said the FDIC and Fed should be part of future modernization efforts.
Read Brainard’s Speech
Read ICBA’s Letter