The Comptroller's office finalized a rule allowing national banks to keep profits generated from community development investments.

Previously, national banks were required to invest these profits in other public welfare projects. The requirement was created to ensure that national banks investing in community development projects were acting in the public interest - not speculating on low-income real estate.

However, the requirement discouraged banks from investing in community development projects and reduced operating income, according to the agency.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.