Federal agencies this week are set to act on Community Reinvestment Act reform and climate risk.
This Week’s Developments:
The Federal Reserve and FDIC have board meetings set for tomorrow to finalize interagency rules to modernize CRA regulations.
The FDIC also will consider an interagency climate risk management framework for large banks.
Background:
CRA Reform: Regulators in May 2022 issued a CRA modernization proposal designed to adapt CRA regulations to banking industry changes, improve clarity to regulated institutions, tailor evaluations and data collection to bank size and type, and maintain a unified interagency approach.
Climate Risk: The interagency principles on managing exposures to climate-related financial risks would likely apply to banking organizations with more than $100 billion in total assets.
ICBA Advocacy:
CRA: ICBA has called on federal banking regulators to issue a uniform CRA final rule that minimizes new data collection and reporting burdens for community banks.
Climate Risk: ICBA strongly opposes climate risk regulation of community banks and has expressed concerns with agency proposals, including in an American Banker op-ed and congressional statement this year.