Federal Reserve Board ("FRB") Governor Lael Brainard emphasized the need to clarify the current assessment area definition in the Community Reinvestment Act ("CRA").
In remarks at a National Community Reinvestment Coalition conference, Ms. Brainard reported that the FRB is considering "rework[ing] the assessment area definition" so that banks of a certain scale would have separate assessment areas for their retail activities and community development activities. She explained that as part of this approach, a bank would get CRA consideration for community development activities in a more expansive area.
Ms. Brainard affirmed her commitment to bolstering the CRA's role in economic development in "low- and moderate-income communities."
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