WASHINGTON—The Federal Reserve has issued an advance notice of proposed rulemaking (ANPR) seeking public feedback on how to modernize the Community Reinvestment Act (CRA).
The Office of the Comptroller of the Currency (OCC) earlier this year released its final rule to make changes to banks' requirements under the CRA.
The Fed's ANPR indicates that the central bank is interested in providing a clearer description of qualifying CRA activities that support minority depository institutions (MDIs), community development financial institutions (CDFIs) and low-income credit unions. It specifically asks for ways to reduce burdens on smaller banks and also provides small banks in rural areas "greater clarity and flexibility" as it relates to tailoring the facility-based assessment area definition.
Fed Gov. Lael Brainard this week gave a speech further detailing the CRA ANPR and the Fed's efforts to "strengthen, clarify, and tailor the CRA regulation to better meet the law's core purpose."