Regulation BB Community reinvestment (CRA) for banks and savings associations USA

Regulation BB is a set of rules issued by the Federal Reserve Board (FRB) that pertain to community reinvestment (CRA) for banks and savings associations. The Community Reinvestment Act (CRA) is a federal law that requires financial institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods. CRA regulations are intended to encourage financial institutions to help meet the credit needs of their entire communities, including low and moderate income neighborhoods.

Regulation BB sets out the standards that the Federal Reserve uses to evaluate a bank’s or savings association’s performance under the CRA. The regulation also includes the procedures for how the Federal Reserve will conduct a CRA examination and how it will assess a bank’s or savings association’s performance.

Regulation BB also includes provisions that require financial institutions to make certain disclosures, such as the publication of certain data about their lending activities, which can be used by the public, community groups, and government agencies to assess an institution’s CRA performance.

Overall, the Regulation BB is an important tool for ensuring that financial institutions are meeting the credit needs of their entire communities, including low- and moderate-income neighborhoods. It also helps to promote fair lending practices and increase transparency in bank’s lending activities. It’s important to note that regulations are subject to changes and updates, it’s always good to check the current version of the regulation.

Regulation BB includes provisions that pertain to community reinvestment (CRA) for banks and savings associations. Some of the key provisions of the regulation include:

• Performance Standards: The regulation sets out the standards that the Federal Reserve uses to evaluate a bank’s or savings association’s performance under the CRA. The standards are based on three factors: lending, investment, and service. The performance is evaluated on a scale from Outstanding to Needs to Improve.
• Examination Procedures: The regulation includes the procedures for how the Federal Reserve will conduct a CRA examination, including the frequency of examination, the scope of the examination, and the standards for evaluating a bank’s or savings association’s performance.
• Disclosure Requirements: The regulation requires financial institutions to make certain disclosures, such as the publication of certain data about their lending activities, which can be used by the public, community groups, and government agencies to assess an institution’s CRA performance.
• Public Comments: The regulation also allows for public comments on a bank’s or savings association’s CRA performance, which are considered by the Federal Reserve when evaluating the bank’s or savings association’s performance.
• Community Development: The regulation encourages banks to engage in community development activities, such as providing financial services and investment in low- and moderate-income communities, and to document their community development activities.
• Fair Lending: The regulation includes provisions that prohibit discrimination against any person on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or exercise of rights under the Consumer Credit Protection Act.