Pub. 13 2018-2019 Issue 3

NEBRASKA BANKERS ASSOCIATION 13 Counselor’s Corner — continued on page 14 banks. Since then, Comptroller Joseph Otting further eased the regulatory bur- den with a June 2018 bulletin 2 relaxing certain CRA exam procedures and an additional release 3 in August 2018 similar to the October 2017 revision. Prior to releasing the ANPR, the OCC engaged over 1,000 stakeholders on the topic of the existing CRA framework and whether it is meeting the credit needs of communities in the constantly changing landscape of banking. The OCC’s stated goal for issuing the ANPR is to obtain additional public input on revisions to CRA regulations to encourage more community and economic development by encouraging banks to lend more to low andmoderate-income (“LMI”) areas, small businesses, and other communities in need of financial services. The ANPR The ANPR follows recommendations by the U.S. Treasury for the Federal bank- ing regulators to reformCRA regulations to reflect the significant technological evolution experienced by the banking industry since the CRA’s enactment. 4 Treasury’s memorandum was directed to the primary CRA regulators: the OCC, the Federal Deposit Insurance Corpora- tion (FDIC), and the Federal Reserve System (Federal Reserve). In issuing the ANPR, the OCC becomes the first of the three bank regulators tomove forward on updating its CRA regulations. 5 In the ANPR, the OCC described stakeholder concerns that (1) the CRA’s statutory purpose of encouraging banks to help meet the credit needs of the com- munities they serve including LMI areas “is not fully or effectively accomplished through the current regulations,” (2) the current CRA regulatory framework “no longer reflects how many banks and consumers engage in business of bank- ing,” and (3) the current CRA regulatory requirements lack “clarity, consistency, and certainty.” The ANPR requests re- sponses to 31 questions across several topic areas, including (1) the current CRA regulatory approach; (2) a modernized CRA regulatory approach; (3) redefining communities and assessment areas; (4) CRA-qualifying activities; and (5) re- cordkeeping and reporting. Comments on the ANPR will be due no later than 75 days after the date it is published in the Federal Register. (1) Current CRA Regulatory Approach The ANPR seeks input on the extent to which stakeholders view the current CRA regulatory framework as clear and easy to understand and whether the regulations have been applied consis- tently and whether CRA ratings 6 are assigned in a fair, objective, and trans- parent manner. The ANPR also solicits comments on whether the existing regu- lations are effective in encouraging banks to serve the convenience and needs of their communities in a way that fulfills the objectives of the CRA. Commenters are encouraged to identify which features and aspects of the current framework should be retained or modified. (2) Modernizing the CRA Regulatory Approach The ANPR discusses the potential adoption of a more metric-based method for CRA performance evaluations pursu- ant to which the federal banking agen- cies would separately evaluate retail and community development activities using quantitative benchmarks to measure qualifying CRA activities and assign rat- Fully registered Dealer Bank • Not FDIC Insured • No Bank Guarantee • May Lose Value FROM ONE COMMUNITY BANK TO ANOTHER. We have delivered fixed income strategies and support to banks of all sizes since 1985. Operating in over 30 states, the Capital Markets Group is always ready to meet the needs of our fellow community bankers. We keep investing simple so that banks can focus on what really matters — lending to the communities who support us. • Portfolio Strategy, Sales and Service • Bond and Securities Underwriting/Trading • BancPath® and FlexLoan® via Asset Management Group We speak the same language. COUNTRY CLUB BANK