OCC Adopts Rule Rescinding 2020 CRA Rulemaking

The OCC adopted a final rule under the Community Reinvestment Act to rescind a June 2020 rulemaking (see related coverage.) The final rule applies to national banks and savings associations.

The final rule is based on the 1995 Rules adopted by the OCC, the Federal Reserve Board, the FDIC and what was then the Office of Thrift Supervision. The final rule will provide different performance tests and standards for banks of different sizes, structures, and operations. Specifically, it will provide an assessment method for (i) small banks that would be streamlined and would emphasize lending performance, (ii) intermediate small banks that would consider lending and community development activities, (iii) large, retail banks that would focus on lending, investment and service performance, and (iv) wholesale and limited purpose banks that would be based on community development activities. The rule also would allow any bank the option for the appropriate Federal banking agency to assess it under a strategic plan. The OCC said "[t]his action is intended to facilitate the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions."

The final rule goes into effect on January 1, 2022. Compliance is also required on January 1, 2022, with the exception of compliance with OCC Rules 25.43 ("Content and Availability of Public File") and 25.44 ("Public Notice by Banks and Savings Associations"), which is required by April 1, 2022.