CBA Statement on Community Reinvestment Act NPR

December 12, 2019
Nick Simpson

CBA Statement on Community Reinvestment Act NPR

 

“Modernizing CRA is a generational opportunity and, if done properly, will enable banks to invest more in communities across the country.”

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“The OCC and FDIC should be commended for tackling this herculean effort and working with banks, community groups and other stakeholders.”

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“CBA hopes the Fed will eventually join the other agencies to prevent competing CRA regimes, which would only reduce the effectiveness of CRA investments.”

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation issued a notice of proposed rulemaking for the Community Reinvestment Act:

 

“While we are continuing to review the proposal, we know modernizing CRA is a generational opportunity and, if done properly, will enable banks to invest more in communities across the country. The OCC and FDIC should be commended for tackling this herculean effort and working with banks, community groups and other stakeholders to get it right instead of simply getting it done.

 

“Increasing transparency, reducing subjectivity and ensuring timely examination results are all important issues addressed in the proposal. CBA is interested in learning more about and commenting on the recordkeeping and reporting requirements, how the list of approved activities will be maintained and how the qualitative and quantitative assessments will work during examinations.

 

“The OCC, FDIC and Fed have spent months working on a compromise proposal, which includes input from each agency as well as community groups and the banking industry. CBA hopes the Fed will eventually join the other agencies to prevent competing CRA regimes, which would only reduce the effectiveness of CRA investments.

 

“CBA and our members look forward to continuing our constructive work with regulators to ensure Community Reinvestment Act investments reach more people and communities in need.”

 

NOTE: More information on CBA’s work to modernize the Community Reinvestment Act is available at ConsumerBankers.com/CRA and CBA’s recommendations for successful CRA reform include:

  • Providing clarity and certainty in CRA-eligible activities
  • Accounting for digital transformation and customer preference
  • Permitting more flexibility to invest where there is need
  • Providing optionality for business models and strategies.

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.