US Federal Deposit Insurance Corporation, Federal Reserve Board and Office of the Comptroller of the Currency propose rescinding the 2023 Community Reinvestment Act rule and reverting to the 1995 framework

The Federal Deposit Insurance Corporation, the Federal Reserve Board and the Office of the Comptroller of the Currency issued a joint proposal to rescind the Community Reinvestment Act (CRA) final rule adopted in October 2023 and replace it with the agencies’ CRA regulations originally adopted in 1995, with certain technical amendments. The agencies noted that the 2023 final rule is subject to legal action and has not taken effect, and that banks therefore continue to be assessed under the 1995 regulations. If adopted, the proposal would reinstate the prior framework with technical changes, with the stated objectives of restoring certainty for stakeholders in light of the pending litigation and limiting regulatory burden on banks while maintaining expectations that banks serve their communities. Comments are due 30 days after publication in the Federal Register.