The OCC should act now to update the Community Reinvestment Act so banks can better serve their communities, wrote Zions Bank President and CEO A. Scott Anderson in a Deseret News op-ed on Thursday. The op-ed came just a few weeks after the OCC issued its advanced notice of proposed rulemaking seeking input on the best ways to modernize CRA regulations.
“I am highly supportive of the mission of the Community Reinvestment Act. It has made a difference in the lives of millions of people in Utah and across the nation,” Anderson wrote, noting that due in part to the CRA, Utah banks have invested more than $5 billion in low- to moderate-income communities throughout the state. “But since its creation more than 40 years ago, society has changed dramatically and the law needs some revisions to stay relevant and to serve more people in today’s world.”
In issuing its ANPR, the OCC observed that regulations implementing the law are cumbersome and complex – and that regulatory evaluations are inconsistent and lack transparency. ABA continues to advocate for the CRA be reformed to better align resources with actual community needs, promote economic growth, simplify compliance requirements and improve the transparency of the supervisory process.
