FRB Vice Chair Highlights Ongoing Efforts to Eradicate Discrimination in Financial Services

Federal Reserve Board ("FRB") Vice Chair for Supervision Michael S. Barr encouraged financial institutions to do more to promote community development and break down barriers to access credit and banking services.

In remarks at a financial inclusion banking conference, Mr. Barr described drivers of financial disparity and how the financial services community could work together to address them. He highlighted the need to (i) end discrimination in lending and other financial services and protect consumers from unfair, abusive, or illegal practices, (ii) "seek out opportunities to invest in low- and moderate-income communities, small businesses, and community infrastructure" and (iii) "develop products and services that can help people save and build wealth."

Mr. Barr described regulatory efforts to address racial discrimination in financial services, including bias in automated lending decision-making, redlining and other discriminatory practices at individual institutions.

Mr. Barr said ensuring equal access to credit would benefit both consumers and banks. He said the FRB will work closely with other regulators, particularly the CFPB, to resolve consumer protection weaknesses and the risk management issues that often lead to those weaknesses. Mr. Barr also encouraged financial institutions to develop and expand programs to boost outreach to underserved communities, and encouraged regulators to provide incentives for institutions to work with community banks and offer products that are tailored to low income communities.