Regulators Proposed CRA Revisions in July

The proposal would adjust how banks are evaluated on local lending, affecting oversight in communities across the U.S.

Updated on Sept. 24, 2026 in Banking

Bold flat-color illustration featuring a heavy brass bank vault door and a stone cornerstone in navy, cream, and red. — Federal regulators proposed revisions to the Community Reinvestment Act on July 31, 2026, aiming to update bank lending oversight and evaluation criteria. AI Illustration. Upload story photo >

Live Poll

Do you trust that proposed federal banking regulation changes will improve financial access in your community?

Federal regulators proposed revisions to the Community Reinvestment Act on July 31, 2026, aimed at updating oversight for banks of varying sizes. The change marks a potential shift in how institutions are evaluated for their commitment to lending and investment in local areas.

Why it matters

Regulators believe these changes will lower compliance costs for banks, while critics express concern that reduced reporting requirements could weaken the scrutiny of community development efforts. These updates may alter the landscape of financial access and institutional investment in underserved areas.

The proposal introduces a new small bank threshold of $1 billion in assets, while institutions with $1 billion to $10 billion would fall into an intermediate category. The final effect on the intensity of community development lending oversight remains subject to public feedback.

The players

OCC

The Office of the Comptroller of the Currency oversees federal bank regulation and enforces laws related to consumer access to credit.

FDIC

The Federal Deposit Insurance Corporation regulates financial institutions and protects consumer deposits while maintaining banking system stability.

The details

The proposed revisions intend to streamline bank examinations by easing reporting requirements and raising asset-based size thresholds. Banks falling into these new categories would face less extensive evaluation, which regulators argue will focus the law's core purpose while reducing administrative burdens. This policy change could influence how households in regions like Long Island see credit and investment availability from their local banks.

1977: The Community Reinvestment Act was originally enacted.
2014: Brentwood received its designation as a banking development district.
Summer 2026: Federal regulators initially proposed the CRA revisions.
July 31, 2026: The formal CRA proposal was issued.
October 13, 2026: The deadline for the public comment period concludes.

Money Landscape

The proposal represents an ongoing effort to modernize the Community Reinvestment Act, which was first enacted in 1977. These updates sit within a long-term cycle of adjusting regulatory oversight to balance the burden on banks with the need for community investment.

These changes could affect the availability of loans and financial services in your local area by altering how banks prioritize their development investments. If you are concerned about credit access in your community, consult with a qualified financial advisor to understand local banking trends.

The takeaway

The proposed changes aim to streamline how banks account for their community investments by raising asset-size reporting thresholds. You can track this policy's development by monitoring the public comment results following the October 13 deadline.