An American Banker op-ed argues that the Community Reinvestment Act (CRA) does not need a complete overhaul; instead just some tweaks to modernize CRA will do the trick; taking “branchless banks” or digital banks into consideration they should be “be given credit for community development activities anywhere, rather than being limited to the artificially narrow assessment area around their main office.”; the only exception to this rule should be on banks that have a geographic concentration of deposits, so the assessment areas should consider a bank’s deposit-taking as well as branch footprint; also, the CRA credit for mortgage backed securities should not be eliminated. Source.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.