ABA Statement on Joint OCC/FDIC Community Reinvestment Act Rule Proposal

“Today’s joint proposal from the FDIC and OCC marks progress toward a Community Reinvestment Act framework that provides banks with greater clarity to plan and deliver loans and investments that reflect local needs, bank business strategies and today’s banking landscape. While we are continuing to review it closely, we are pleased that the proposal would bring more transparency and consistency to how banks plan and carry out CRA activities. We also appreciate that the proposal raises asset caps for small and intermediate bank performance tests, which are too low and do not reflect the evolution those banks have seen in the more than 20 years since the intermediate small bank classification was first established.

“We appreciate Comptroller Gould and Chairman Hill’s leadership and look forward to engaging in the public comment process. We also continue to believe that updating the CRA regulatory framework should be an interagency initiative that also includes the Federal Reserve. CRA reforms should be workable and durable so that resources are not redirected from community reinvestment toward implementing multiple revisions to CRA.  A coordinated effort to update the CRA framework would ensure regulators can apply the law effectively while allowing banks to support economic growth where it is needed most.”