Press Release Tools E-mail This Press Release Printer-Friendly Format

America’s Community Bankers is supporting an expansion of the investments, loans and services that will qualify for Community Reinvestment Act credit for banks and savings institutions. ACB had previously identified for the federal banking regulators the need to provide CRA credit for community reinvestment activities outside of banks’ assessment area.

The regulators, through the Federal Financial Institutions Examination Council, addressed ACB’s suggestion and proposed a revision to the interagency question-and-answer commentary on CRA.

In comments to the FFIEC, ACB said it agreed with the revision that CRA activities should not be required to have a direct or immediate benefit to the institution’s assessment area to achieve CRA credit. ACB said members’ involvement in area, state or regional reinvestment programs generally has an indirect impact on local assessment areas.

Among other reasons why geographically based requirements should be flexible, ACB said, is that competition from larger institutions for CRA loans requires community banks to find community reinvestment opportunities beyond their normal service areas.

A copy of the comment letter is linked.