FDIC Proposal Would Ease CRA Requirements
The FDIC last week issued proposed rules that would ease Community Reinvestment Act requirements for about 1,350 banks. The proposal would raise the threshold for the so-called short CRA format from $250 million in assets to $500 million. The proposal is similar to ones being adopted by other banking regulators at the Federal Reserve, Comptroller of the Currency and Office of Thrift Supervision. Under CRA banks are required to make investments in low-income and minority neighborhoods where they operate as a condition for opening branches.