The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Agencies Seek Comment on Proposal to Revise CRA Regulations
January 22, 2004
(Updated February 6, 2004)
Circular No. 11573
To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board asked for comments on an interagency proposal to revise regulations that implement the Community Reinvestment Act (CRA).
The CRA is intended to encourage depository institutions to help meet credit needs in their communities, including low- and moderate-income neighborhoods. The agencies are proposing limited amendments to the regulation in two areas.
Amend the definition of "small institution," a category of institutions entitled to streamlined CRA evaluations, to include banks and thrifts with total assets of less than $500 million (the threshold is now $250 million), and eliminate consideration of an institution's holding company size (now, an institution is not "small" if its holding company is larger than $1 billion).
Specify when unlawful discrimination, other illegal credit practices, or abusive asset-based lending by a bank or its affiliate might adversely affect the banks' CRA rating.
The agencies also propose enhancements to the loan data they disclose in CRA public evaluations and CRA disclosure statements. A notice of proposed rulemaking will be published jointly after it has been acted upon by all of the banking agencies with CRA supervisory responsibilities.
The Board invites comment on the proposal by April 6, 2004.