FRB Governor Lael Brainard Seeks Greater Clarity for CRA Assessments

Federal Reserve Board ("FRB") Governor Lael Brainard emphasized the need to clarify the current assessment area definition in the Community Reinvestment Act ("CRA").

In remarks at a National Community Reinvestment Coalition conference, Ms. Brainard reported that the FRB is considering "rework[ing] the assessment area definition" so that banks of a certain scale would have separate assessment areas for their retail activities and community development activities. She explained that as part of this approach, a bank would get CRA consideration for community development activities in a more expansive area.

Ms. Brainard affirmed her commitment to bolstering the CRA's role in economic development in "low- and moderate-income communities."