FDIC and OCC Propose Changes to Community Reinvestment Act Regulations

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have jointly proposed significant revisions to the regulations implementing the Community Reinvestment Act (CRA). These proposed changes aim to adjust the asset thresholds, which would reduce the number of banks subject to the CRA's more rigorous lending, investment, and community development requirements. Additionally, the proposal seeks to limit CRA credit for community development grants, stipulating that no more than 15% of grant funds can be allocated to overhead. The Native CDFI Network has expressed criticism, suggesting the changes could diminish access to capital in Native communities. The proposed rule will be open for public comment for 60 days following its publication in the Federal Register.