“By definition, community banks are focused on meeting the financial needs of their communities. Today’s proposal for a simplified CRA strategic plan will allow them to better focus their resources on local lending needs. The OCC will continue to prioritize community bank reforms to reduce burdens and strengthen their role as America’s economic engine.”
Under the CRA’s strategic plan option, the guidelines would make it easier for banks to tailor their CRA plans to local needs by clarifying required elements, setting clearer goals, and streamlining the process for submitting plans to the OCC for approval.
Under the CRA strategic plan option, banks can tailor their CRA examinations to the needs of their communities, rather than being assessed based on a one-size-fits-all exam. The bank could create a plan that reflects the specific needs of the communities it serves and what the bank can realistically do based on its size, resources, products and business model.
The OCC said the plan provides flexibility and could help reduce CRA-related regulatory burdens for a range of community banks, including small retail institutions and larger, non-traditional banks that operate primarily online.
The agency said it will accept public comments on the proposed guidelines for 60 days after they are published in the Federal Register.
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