Recent changes to the implementing framework for the
Barr delivered a speech on the
"This important update will recognize banks providing more banking services, community development financing, and volunteer work in Native communities," Barr said. "Another key change is that banks can now get credit for qualifying activities that take place outside of their assessment areas. What this means is that even banks whose assessment areas fall outside of Native Land Areas can receive CRA credit for activities serving those areas."
Later Tuesday afternoon, in a webinar with Harold Pettigrew, the president and CEO of Opportunity Finance Network, Barr said the agencies made a point to include special provisions aimed at Native lands because of the historic challenges those communities have faced in accessing the banking system.
"That was to recognize the hard work of serving Native Land Areas," Barr said. "It's much harder to … make a mortgage loan, harder to engage in some community development activities, and we wanted to make sure that those areas were getting the appropriate attention."
The new rule also includes provisions that enable banks to get credit for engaging in activities that benefit Native individuals and communities, even if they do not live on designated tribal land.
Barr added that the ability to get credit for activities undertaken with Treasury Department-certified community development financial institutions, or CDFIs — including designated Native CDFIs — could prove particularly helpful in addressing capital and credit needs for Native communities, regardless of where they live. He noted that Native CDFIs and other community-based groups will play a "vital role" in steering banks toward the areas with the greatest need.
Barr added that CRA-eligible activities could include supporting the development of low-income housing or loans that facilitate community services, such as child care, education, workforce development and job training and health services.
The reforms are the first substantive update to the CRA in decades. They are intended to bring the standards for evaluating banks' abilities to serve their constituent communities into the 21st century, by untethering assessment areas from physical branch locations and instead factoring in the reach of mobile banking.
The framework, which goes into effect on Jan. 1, 2026, also makes structural changes to the thresholds that govern regulatory obligations. Specifically, it draws the line for being a small bank to below $600 million of assets, rather than $376 million. Intermediate banks are those between $600 million and $2 billion of assets, and large banks are those
The new rules are
Barr and other regulators, meanwhile, have said the reforms are suited to
In his speech, Barr said the finalized reform package also carries
"In the years to come, we have an important responsibility to monitor and assess how well the updated CRA regulations meet the needs of Indian Country," Barr said. "In our role as one of the CRA's regulatory agencies, it will be critical that we continue to listen to and learn from your experiences."
