NYDFS Adopts Amendments to CRA Regulations to Evaluate Equitable Access to Credit

The New York Department of Financial Services ("NYDFS") adopted amendments to Community Reinvestment Act ("CRA") regulations to require covered banking institutions to provide additional lending data to the state regulator. The amendments will become effective on August 8, 2023.

NYDFS said the additional information will allow it to better evaluate how well minority- and women-owned businesses are being served. The amendments would also allow NYDFS to incorporate the findings of its assessments into banks' CRA ratings. The amendments are intended to help ensure equitable access to credit.

Under the update to the CRA regulation, banking institutions will be required to provide NYDFS with the details of credit applications, including (i) the date of application, (ii) the type of credit applied for and amount, (iii) the status of the application and (iv) details on the business such as size, location and whether the applicant is a minority-owned business, a women-owned business or both. The amendments also provide covered institutions with the steps to obtain and submit the required data.