Treasury Releases CRA Modernization Recommendations

Tuesday, April 3, 2018 - 9:30am

The U.S. Department of Treasury today released several recommendations to modernize the Community Reinvestment Act (CRA). The recommendations were issued to the Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation. They include updating the definition of geographic assessment areas to reflect the changing nature of banking due to technology and other factors; increasing the clarity and flexibility of CRA examinations; incorporating performance incentives to better serve the CRA’s intended purpose of encouraging banks to meet the needs of their community; and improving the examination process to increase the timeliness of evaluations and increase accountability for banks’ planning of CRA activity.