Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s announcement that the federal banking regulators intend to issue a proposal to rescind the Community Reinvestment Act final rule issued in October 2023 and reinstate the CRA framework that existed prior to that final rule, in light of pending litigation.
“ICBA and the nation’s community banks applaud the federal banking agencies for their plan to rescind the flawed October 2023 rule reforming the Community Reinvestment Act, which would create disproportionate implementation costs for community banks. As ICBA, the Independent Bankers Association of Texas, and other groups have argued in a lawsuit asking the court to vacate the rule, federal regulators exceeded their statutory authority and acted arbitrarily and capriciously in advancing their amendments to CRA rules.
“While ICBA and the nation’s community banks support agency efforts to modernize the CRA’s implementing regulations, the October 2023 rule disregards community banks’ strong track record of meeting and exceeding the credit needs of underserved communities.
“ICBA has long advocated for rules that minimize new data collection and reporting burdens for community banks and increase transparency into how ratings are established. We look forward to working with policymakers to tailor CRA requirements and simplify compliance for community banks to ensure CRA policies meet the needs of all community banks and the communities they serve.”