Federal Reserve Proposes Modernizing Regulation O; OCC and FDIC Propose New Community Reinvestment Act Framework

The Federal Reserve has requested public comment on a proposal to modernize Regulation O, which governs the extension of credit to bank insiders. Concurrently, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have proposed a rewrite of Community Reinvestment Act (CRA) regulations. These proposals aim to increase the emphasis on lending activity, reduce compliance requirements for smaller banks, and revise standards for community development activities, signaling significant federal regulatory changes in the financial sector.