On October 24, 2023, federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. The rule will move banks away from the original intent of CRA, which was to encourage banks to meet the credit needs of their low to moderate income communities.
In this episode of Calling All Bank Directors, Ken Thomas, a leading expert in CRA for many years, explains what the regulation says and what has changed from the old rule. He believes that the new rule will result in nearly 10 times the number of failing banks – from just over one percent to around 10 percent.
AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations
Ken Thomas is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank.
*****
Thanks to our guest, Ken Thomas: https://www.communitydevelopmentfund.com/about/
Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.
Questions? Contact dbaris@aabd.org.
The Bank Board Role in Supporting Compliance with New CRA Regulations | Calling All Bank Directors Ep. 52
Preparing for Your Next bank Examination in Light of Recent Bank Failures | Calling All Bank Directors Ep. 50
New Fair Lending Challenges Facing Banks and Bank Directors and Officers | Calling All Bank Directors Ep. 49
Planning for a Sale of Your Bank | Calling All Bank Directors Ep. 48
The Search For and Selection of Great Bank Directors | Calling All Bank Directors Ep.47
Federal Banking Agencies’ Proposed CRA Regulations: What Are the Pitfalls? | Calling All Bank Directors Ep. 46
Bank Merger Trends and Bank Capital Needs | Calling All Bank Directors Ep. 45
Misalignment of Incentive Compensation | Calling All Bank Directors Ep. 44
Inflation and How to Prepare for It | Calling All Bank Directors Ep. 43
Financial Crises: Preparing for the Next Crisis (Part 2) | Calling All Bank Directors Episode 42
Financial Crises: Why, When, How (Part 1) | Calling All Bank Directors Episode 41
Top 10 Questions You Should be Asking about Enterprise Risk Management | Calling All Bank Directors Ep. 40
Challenger Core Systems, Part 2 | Calling All Bank Directors Ep. 39
Challenger Core Systems, Part 1 | Calling All Bank Directors Ep. 38
Bank Technology, Part 2 | Calling All Bank Directors Episode 37
Bank Technology, Part 1 | Calling All Bank Directors Episode 36
ALCO and Investments, Part 4 | Calling All Bank Directors Ep. 35
ALCO and Investments, Part 3 | Calling All Bank Directors Ep. 34
ALCO and Investments, Part 2 | Calling All Bank Directors Ep. 33
Create your
podcast in
minutes
It is Free
Bank of America Treasury Insights
Human Capital Leadership
BusinessWISE
The Home Service Expert Podcast
3 Takeaways