Community Reinvestment Act (CRA)

Final Rule on Community Reinvestment Act

Summary

On October 24, 2023, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency issued a final rule to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law. The CRA is a landmark law enacted in 1977 to address systemic inequities in access to credit. The CRA encourages federally insured banks to help meet the credit needs of the communities in which they do business, especially low- and moderate-income (LMI) communities, consistent with safe and sound operations.

Objectives of Final Rule

Building on feedback from stakeholders and research, the final rule updates the CRA regulations to achieve the following eight key objectives:

• Strengthen the achievement of the core purpose of the statute.
• Adapt to changes in the banking industry, including the expanded role of mobile and online banking.  
• Provide greater clarity and consistency in the application of the regulations.
• Tailor performance standards to account for differences in bank size, business models, and local conditions.
• Tailor data collection and reporting requirements and use existing data whenever possible.
• Promote transparency and public engagement.
• Confirm that CRA and fair lending responsibilities are mutually reinforcing.
• Promote a consistent regulatory approach that applies to banks regulated by all three agencies.

Community Reinvestment Act and Public Comments

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