Make the administration of the CRA more objective, predictable, and consistent.
Account for technology changes in the business of banking.
Specifically, the Proposed Rule would:
Clarify and expand which activities qualify for credit under the CRA.
Expand the geographic area where CRA activity counts by creating additional assessment areas linked to where an institution's deposits originate.
Provide a more objective method to measure CRA activity by establishing activity thresholds as a percentage of domestic deposits.
Revise data collection, recordkeeping, and reporting requirements.
It is notable that the Federal Reserve Board, which also has implementing CRA regulations, did not participate in this joint rulemaking. The Proposed Rule has already generated a significant amount of public criticism. For example, some critics argue that the Proposed Rule relies too much on a general performance metric that measures activity thresholds as a percentage of retail domestic deposits.
Comments will be accepted for 60 days after publication of the Proposed Rule in the Federal Register.