The Office of Thrift Supervision issued a final rule Wednesday revising the definition of "community development" in its Community Reinvestment Act regulations.
The policy gives institutions favorable consideration for investing in distressed or underserved rural areas and designated disaster areas.
The change, which followed the lead that other federal banking regulators took in August, gives savings associations more flexibility in serving their communities, the OTS said.
"It is particularly appropriate that the provisions regarding CRA credit for revitalizing and stabilizing designated disaster areas are put into effect immediately in light of the unprecedented and tragic devastation caused by several recent Gulf Coast hurricanes. In this way, OTS will further encourage savings associations to take an active role in assisting in disaster recovery efforts," the rule said.
