Fed’s Brainard offers glimpse of what revamped CRA could look like

American Banker
Tuesday, March 12, 2019

Governor Lael Brainard of the Federal Reserve Board recently detailed possible steps forward on reforming the Community Reinvestment Act. These possible provisions include an updated approach to CRA assessment boundaries, revising how banks are tested for community development activities, and tailoring certain CRA requirements based on bank size. The aim is to recognize activities beyond a bank's branch network, the traditional CRA assessment boundary, while still prioritizing activities within that network. "By creating separate assessment areas for retail and community development activities, we believe that banks would continue to place their community at the center of their retail lending and service activities while participating in meaningful community development opportunities," said Brainard in a speech to the National Community Reinvestment Coalition.