Richard Neiman, New York State's superintendent of banks, suggested three ways regulators can help bolster the reform effort under way for the Community Reinvestment Act.

"The federal agencies are currently considering revising the CRA, and much of the debate has centered around whether the scope of institutions subject to the CRA should be expanded," Neiman said in prepared remarks before the CRA and Fair Lending Colloquium in Las Vegas on Tuesday.

"While this is an important question, it should not divert attention from other pressing efforts to reform the CRA."

Neiman said that regulators first need a more precise ratings scale that will differentiate between banks whose performance is very good and those that are not making a real impact.

Neiman also said there needs to be added incentives for banks to receive an "outstanding" rating on their CRA exam.

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.