Washington, D.C. (Sept. 21, 2020) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey released the following statement on today's Federal Reserve advance notice of proposed rulemaking on reforming Community Reinvestment Act regulations.
"With a mission of maximizing the availability of financial services and credit in local communities, ICBA and the nation's community banks appreciate regulatory efforts to modernize the Community Reinvestment Act. Today's Federal Reserve advance notice of proposed rulemaking on reforming CRA rules is a constructive step toward a clearer and more consistent framework.
"The Fed's request for feedback on provisions to define activities that qualify for CRA credit, provide dashboards to track progress, and avoid mandates on geographically tracking deposits for small banks are positive steps to enhance clarity and transparency. Further, the ANPR's request for comment on allowing smaller community banks to remain under the existing CRA framework is a positive approach to help avoid excessive burdens and a one-size-fits-all approach on these local institutions.
"While ICBA generally supports modernizing CRA regulations to enhance transparency and reflect banking industry changes driven by technology, community banks remain concerned that agency efforts will impose new data-collection costs and regulatory complexity that could inhibit their ability to serve local communities.
"ICBA will fully review today's Fed proposal with our member community banks to assess how it may affect their ability to meet the needs of their communities, including low- and moderate-income individuals. We look forward to continuing to work with the Fed on CRA modernization."
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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