Fed's Brainard: Community banks key to CRA modernization

The Federal Reserve relied on ICBA and community bank input in developing its recent advance notice of proposed rulemaking on modernizing Community Reinvestment Act regulations, Fed Governor Lael Brainard told ICBA community bankers.

Addressing ICBA's Fall Leadership Meeting, which also featured a Q&A with Treasury Secretary Steven Mnuchin, Brainard said ICBA and community banks have been an important source of information on their unique role in local communities.

The Fed's ANPR includes provisions to define activities that qualify for CRA credit, provide dashboards to track progress, and allow smaller community banks to remain under the existing CRA framework.

In a statement on the ANPR, ICBA said it is a constructive step toward a more consistent framework but cautioned against any new regulatory costs or complexities.