Insight
Federal banking regulators (FDIC and OCC) have released a proposal to narrow how banks earn Community Reinvestment Act (CRA) credit, shifting focus more towards lending activity and away from deposit products.
Regulators move to narrow CRA, drawing fire from advocates
Summary
Federal regulators propose narrowing the Community Reinvestment Act (CRA) scope, focusing more on lending and tightening grant credit for large banks. Asset thresholds for small and midsized institutions are raised, potentially reducing compliance burdens for them. The proposal faces strong criticism from advocates concerned about reduced funding for non-profits.
Key takeaway