Regulators clarify: Banks will receive favorable CRA consideration for community development activities in response to coronavirus crisis

The federal banking agencies will provide favorable consideration under Community Reinvestment Act (CRA) rules of certain banking services and community development activities by banks related to the coronavirus crisis, the agencies said Thursday.

In a joint statement, the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) said that in light of the declaration of a national emergency over the coronavirus crisis, they are clarifying that financial institutions will receive CRA consideration for community development (CD) activities.

Qualifying CD activities, the agencies said, include those that help to revitalize or stabilize low- or moderate-income geographies as well as distressed underserved non-metropolitan, middle-income geographies and that support community services targeted to low- or moderate-income individuals.

“Favorable consideration will be given to CD activities located in a broader statewide or regional area that includes a bank’s CRA Assessment Area and that help to stabilize communities affected by the COVID-19, provided that such institutions are responsive to the CD needs and opportunities that exist in their own assessment area(s),” the agencies said.

Joint Statement on CRA Consideration for Activities in Response to the COVID-19