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The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are developing a proposed rule to modernize the regulatory and supervisory framework for the Community Reinvestment Act (CRA) in order to more effectively meet the needs of low- and moderate-income (LMI) communities and address inequities in credit access.  This includes accounting for changes in the banking system, applying metrics to certain CRA evaluation standards, and providing greater clarity regarding CRA-eligible activities.

The agencies’ CRA regulations were last substantially updated in 1995.  Stakeholders have provided feedback on modernizing the regulations.  Along with general support for the CRA and its goals, common themes include the need for: (1) Greater clarity on where banks’ activities will be assessed; (2) additional incentives for banks to serve LMI, unbanked, underbanked, and rural communities; (3) greater clarity regarding performance measures and the basis for assigning ratings; and (4) minimizing bank recordkeeping and reporting burden.