Big Banks Face Fresh Anti-Redlining Rules From Top US Regulators
- Fed, FDIC, OCC approve revamped regulations for CRA on Tuesday
- Lenders online and mobile banking activity would be considered
The Federal Reserve voted on Tuesday in Washington to approve the changes.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Top US banking regulators have updated decades-old rules that are meant to tackle redlining and boost lending to lower-income areas.
Under Tuesday’s plan, the landmark 1977 Community Reinvestment Act will for the first time cover online and mobile banking services. That means the grades that regulators give firms for lending to low- and moderate-income communities won’t be based just on the locations of physical branches. The overhaul will also stiffen other criteria for big lenders.