ICBA urges uniform CRA rule that minimizes reg burdens

ICBA called on federal banking regulators to issue a uniform final rule on Community Reinvestment Act modernization that minimizes new data collection and reporting burdens for community banks.

Limit New Mandates: In its comment letter on the interagency proposal to modernize CRA rules, ICBA said regulators should limit new data collection mandates and create increased transparency into how ratings are established.

More: ICBA also called on regulators to:

• Allow institutions with less than $10 billion in assets to opt into new CRA tests or to retain their current exam framework.

• Raise the asset thresholds for small and intermediate banks to $750 million and $2.5 billion, respectively.

• Create a qualifying activities list and confirmation process.

• Finalize a provision allowing banks to receive credit for community development credit outside their assessment areas.

• Raise the loan volume thresholds for delineating Retail Lending Assessment Areas, which are designed primarily to evaluate large, direct banks and are not appropriate for community banks.

• Grant credit for activities conducted in partnership with minority and women-owned depository institutions as well as certified community development financial institutions.

• Apply heightened scrutiny to credit union acquisitions of community banks due to tax-exempt credit unions’ exemption from CRA rules.

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