A bank could tailor its anti-redlining examination based on the needs of the community and the products and services the bank offers to serve those needs under proposed guidance unveiled Wednesday by the national bank regulator.
The Office of the Comptroller of the Currency (OCC) said the proposed “simplified strategic plan” guidance is aimed at reducing regulatory burden for community banks, in particular that presented by compliance with rules implementing the Community Reinvestment Act (CRA).
In a press release, the OCC indicated the strategic plan option is designed to give banks flexibility. The agency said the option may be a “useful tool for reducing CRA-related regulatory burden for all community banks—from the smallest retail community banks to larger, non-traditional community banks that offer their products and services through the internet.”
Specifically, the agency said the option “enables a bank to tailor its CRA examination based on the needs of its community and its ability to help address those needs based on its capacity and constraints, product offerings, and business strategy.”
“The proposed simplified strategic plan process would reduce burden for community banks by providing clarity on the measurable goals and the other components of a strategic plan required by the CRA regulation and simplifying the method for drafting and submitting a proposed strategic plan to the OCC for approval,” the agency said.
The OCC said the deadline for comments on the proposed guidance will be 60 days after its publication in the Federal Register.
OCC Issues CRA Simplified Strategic Plan to Reduce Regulatory Burden for Community Banks
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