Banking Law News

OCC Plan Would Punish Banks for Steep Drop in Community Lending

Nov. 24, 2020, 10:45 PM

Banks that see a 10% or more drop in lending and investment to low- and moderate-income neighborhoods would get a reduced Community Reinvestment Act rating under a proposal from the Office of the Comptroller of the Currency.

The regulator on Tuesday released performance metrics for evaluating banks under the OCC’s new community lending rules that partly went into effect in October. The proposal outlines how OCC examiners would assess a bank’s retail lending distribution and other objective measures under the CRA, a 1977 anti-redlining rule.

Any bank that has an unexplained 10% drop in its lending activities in applicable...

To read the full article log in. To learn more about a subscription click here.