FRB Seeks Input On Modernizing The Community Reinvestment Act

In an an Advance Notice of Proposed Rulemaking ("ANPR"), the Federal Reserve Board ("FRB") solicited public input on policies that would modernize the "regulatory and supervisory framework" of the Community Reinvestment Act ("CRA").

Among other things, the ANPR is seeking comments on:

• how to define a financial institution's local community for CRA evaluations;
• a proposed "Retail Test" containing two subtests: (i) a "metrics-based" approach that focuses on a bank's major product lines and the credit needs and opportunities of its assessment areas; and (ii) a qualitative approach aimed at improving predictability and transparency in the evaluation of "important aspects" of retail banking services (i.e., branches, delivery systems, and deposit products);