The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have jointly proposed targeted changes to their Community Reinvestment Act (CRA) rules, aiming to better align with the statutory mandate, ensure community development grants reach their intended beneficiaries, reduce burden for banks, and provide greater clarity for CRA consideration.
These proposed changes largely retain the core elements of the regulatory framework in place since 1995. The agencies had adopted final CRA rules on October 24, 2023, but these were enjoined by the U.S. District Court for the Northern District of Texas before they could take effect.
The new proposal seeks to increase the focus on lending and prevent community development grants and donations from being diverted to other activities or excessive operating costs. It would also narrow the scope of retail banking services considered to credit services, excluding deposit services.
Under the proposed rulemaking, banks with $10 billion or less in assets would be exempt from data collection, maintenance, and reporting requirements, and would benefit from more flexible supervision. The agencies also aim to streamline other requirements and enhance the clarity, transparency, and objectivity of CRA evaluations for all banks. Comments on the proposed rule are due 60 days after its publication in the Federal Register.