Federal Bank Regulators Seek to Roll Back Protections Against Discriminatory Lending by Banks
WASHINGTON, D.C. — In a joint statement, the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency announced today that they would seek to rescind the Community Reinvestment Act (CRA) final rule issued in October 2023. The rule aims to address discriminatory lending practices by banks and federal agencies. In its place, the regulators would revert to the CRA framework that existed prior to October 2023. In response, Anne Perrault, senior finance policy counsel with Public Citizen’s Climate Program, issued the following statement:
“If anyone harbors any doubt that the Trump Administration cares more about big banks than low- and moderate-income American communities, doubt no more. The decision by federal banking regulators to try to rescind the 2023 final CRA rule is an effort to offer banks an off ramp to providing credit to low- and moderate-income communities at a time when these communities need it the most.
“While the Trump administration is fueling more extreme weather-related impacts to communities by driving as much fossil fuel production as possible and rescinding environmental protections, families and communities are struggling to find the funds they need to build resilience and respond to the surging number of climate-driven wildfires, floods, and hurricanes threatening them. Incentives provided to banks to extend credit to communities will be lost, and low- and moderate-income communities will suffer due to the Administration’s decision to favor banks over people.”
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