Washington, D.C. (Oct. 24, 2023)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s interagency final rule on Community Reinvestment Act modernization.
“While ICBA and the nation’s community banks support agency efforts to modernize the CRA’s implementing regulations, regulators must recognize that a regulatory change of the length and complexity of this rule will create disproportionate implementation costs for community banks.
“The final rule includes some beneficial changes for community banks and the customers they serve, including raising the small bank asset threshold from its current level of $357 million in assets to $600 million in assets and creating a qualifying activities list and preapproval process that will increase certainty about whether prospective loans or investments count for CRA credit. However, by classifying all banks over $2 billion in assets as large banks, we are very concerned that the rule does not sufficiently differentiate between community banks and the nation’s largest banks.
“ICBA has long advocated for a uniform rule that minimizes new data collection and reporting burdens for community banks and increases transparency into how ratings are established. ICBA and the nation’s community banks look forward to fully reviewing today’s rule to ensure it is tailored, simplifies compliance for community banks, and meets the needs of all community banks and the communities they serve.”
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 roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 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.