“Community banks are important drivers of economic growth and require a tailored, proportional supervisory framework that reflects their critical role in local economies,” Comptroller of the Currency Jonathan V. Gould said in a statement.
“By definition, community banks are focused on meeting the financial needs of their communities. Today’s proposal for a simplified CRA strategic plan enables them to better focus their resources on local credit needs. The OCC will continue to prioritize community bank reforms to reduce burden and strengthen their role as economic engines of America.”
Under the CRA’s strategic plan option, the guidance 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’s strategic plan option, banks may tailor their CRA examinations to the needs of their communities rather than being judged by a one-size-fits-all exam. The bank would be able to create a plan that reflects the specific needs of the communities it serves and what the bank is realistically able to do based on its size, resources, products and business model.
The OCC said the plan provides flexibility and could help reduce CRA-related regulatory burden for a range of community banks, including small retail institutions and larger, nontraditional banks that operate primarily online.
The agency said it will accept public comments on the proposed guidance for 60 days after its publication in the Federal Register.
