American Banker, April 3, 2018: Flexible boundaries and exams: how treasury would modernize CRA
The Treasury Department released long-awaited recommendations Tuesday of reforms for enforcing the nearly 40-year-old Community Reinvestment Act.
The CRA, which grades financial institutions on their lending and other activities in low- and moderate-income neighborhoods associated with their market, has not been significantly updated since the Clinton administration.
The report calls for updates to how banks are examined for compliance, including the definition of geographic boundaries used for CRA exams. Treasury’s recommendations come as federal bank regulators have indicated they will soon release a proposal to reform CRA policy.