ICBA called on federal banking regulators to issue a uniform final rule on Community Reinvestment Act modernization that minimizes new data collection and reporting burdens for community banks.
Limit New Mandates: In its comment letter on the interagency proposal to modernize CRA rules, ICBA said regulators should limit new data collection mandates and create increased transparency into how ratings are established.
More: ICBA also called on regulators to:
Allow institutions with less than $10 billion in assets to opt into new CRA tests or to retain their current exam framework.
Raise the asset thresholds for small and intermediate banks to $750 million and $2.5 billion, respectively.
Create a qualifying activities list and confirmation process.
Finalize a provision allowing banks to receive credit for community development credit outside their assessment areas.
Raise the loan volume thresholds for delineating Retail Lending Assessment Areas, which are designed primarily to evaluate large, direct banks and are not appropriate for community banks.
Grant credit for activities conducted in partnership with minority and women-owned depository institutions as well as certified community development financial institutions.
Apply heightened scrutiny to credit union acquisitions of community banks due to tax-exempt credit unions’ exemption from CRA rules.