STATEMENT: CAP Commends Banking Regulators on Proposing Updated Community Reinvestment Act Rule
Washington, D.C. — Today, the nation’s banking regulators—the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation—proposed updates to their Community Reinvestment Act (CRA) regulations. In response, Todd Phillips, director of financial regulation and corporate governance at the Center for American Progress, issued the following statement:
I commend the banking regulators for proposing this long-overdue reform to the nation’s principal anti-redlining regulations. The CRA was signed into law more than 40 years ago to combat discriminatory lending practices and ensure that taxpayer-insured banks provide the financial services that low- and moderate-income communities across the country need to thrive. Since these rules were last updated in 1995, internet banking has become ubiquitous, banking deserts more prevalent, and climate change impacts more severe.
If enacted, these reforms would help ensure historically marginalized communities have the access to capital necessary to raise standards of living, transition to a green economy, and prepare for increasing climate disasters.
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