The Office of the Comptroller of the Currency (OCC) recently issued proposed guidance for a simplified strategic plan process for community banks to comply with the Community Reinvestment Act (CRA).
The proposed plan enables a bank to tailor its CRA examination based on the needs of the community and the bank’s ability to help address those needs based on capacity and constraints, product offerings, and business strategy. The OCC believes the strategic plan option could be a useful tool for reducing CRA-related regulatory burden for all community banks.
The plan process would reduce banks’ burdens by providing clarity on measurable goals and other components CRA regulations require and by simplifying the method for drafting and submitting a proposed strategic plan to the OCC for approval.
“Community banks are important drivers of economic growth and require a tailored, proportional supervisory framework that reflects their critical role in local economies,” Comptroller of the Currency Jonathan V. Gould said. “By definition, community banks are focused on meeting the financial needs of their communities. Today’s proposal for a simplified CRA strategic plan enables them to better focus their resources on local credit needs. The OCC will continue to prioritize community bank reforms to reduce burden and strengthen their role as economic engines of America.”