In conjunction with the OCC and FDIC, the FRB announced a proposal to update the Interagency Questions and Answers Regarding Community Reinvestment. The proposal seeks to revise 5 questions and answers that address (1) community development activities outside institutions’ assessment areas, (2) additional ways to determine whether recipients of community services are low- or moderate-income and (3) providing a community development service by serving on the board of directors of a community development organization. For example, the proposal would clarify that community development activities in the broader statewide or regional area will be considered in the evaluation of an institution’s CRA performance. The proposal also seeks to add 2 new questions relating to qualified investments and community development lending in the lending test applicable to large institutions. Comments must be received by May 17, 2013.
Alert March 19, 2013