The Federal Reserve Board on Thursday published, “Perspectives from Main Street: Stakeholder Feedback on Modernizing the Community Reinvestment Act,” a summary of feedback received from bankers and community groups during a series of 29 roundtable discussions on the current state of, and potential revisions to, the Community Reinvestment Act (CRA).
The information was gathered from CRA roundtables hosted by the Federal Reserve Board and the Federal Reserve Banks held between October 2018 and January 2019. More than 400 participants shared views that will factor into the Board’s consideration of any CRA modernization proposals. Additionally, representatives from the other federal banking agencies with CRA responsibility were invited to attend the roundtables.
“Meeting with bankers and community group members in communities all around the country allowed us to hear nuanced perspectives about what works well and what could work better under the CRA,” said Federal Reserve Board Governor Lael Brainard.
Enacted in 1977, the CRA affirmed the obligation of federally insured depository institutions to help meet the credit needs of communities in which they are chartered, consistent with safe and sound operations. The act also charged the federal bank regulatory agencies, including the Federal Reserve, with implementing the CRA through issuing regulations and evaluating banks’ performance to determine whether they meet their CRA obligations.
“Perspectives from Main Street: Stakeholder Feedback on Modernizing the Community Reinvestment Act” may be accessed at: https://www.federalreserve.gov/publications/stakeholder-feedback-on-modernizing-the-community-reinvestment-act.htm