American Banker: Fed’s Powell embraces idea of CRA for nonbanks

American Banker, May 3, 2021, Fed’s Powell embraces idea of CRA for nonbanks

Federal Reserve Chair Jerome Powell indicated his support for subjecting non-depository institutions to the Community Reinvestment Act, but said the final decision should be left to Congress.

“You do see this across payments and all sorts of financial services — you see activities that had once been principally the province of banks, moving into the nonbank sector,” he said, speaking at the National Community Reinvestment Coalition’s Just Economy Conference.

“I would just say as a general matter, like activities should have like regulation,” he said. “In terms of … the specific question, that’s really one for Congress to make a decision about, but I like to think, though, that consumers require protection and low- and moderate-income communities require credit support, regardless of the nature of the institution.”

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