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The Greenlining Institute Urges Regulators to Include Racial Equity in the Nation’s Landmark Community Reinvestment Act
08/23/2022
[ Article originally appeared in https://greenlining.org ]
Today, the comment period on a historic update to the regulations implementing the Community Reinvestment Act closed. The Greenlining Institute urges regulators to seize this opportunity to ensure banks play their role in addressing the harm inflicted on communities that were redlined. Redlining was the practice of systematically denying financial services to low-income communities and communities of color that banks perpetuated prior to the CRA’s enactment in 1977, which outlawed the practice. In May 2022, federal regulators including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and Federal Reserve Board proposed amended regulations to the CRA’s implementation and announced a public comment period that closed today. Despite regulators’ stated commitment to leveraging the CRA to advance racial equity, the Notice of Proposed Rulemaking failed to include race as a consideration in the updated regulations. “We have seen major changes in banking since 1977–nationwide banks, bank consolidation into megabanks, and internet banking or fintechs. The CRA must keep pace with the evolution of the banking sector,” said Debra Gore-Mann, Greenlining’s CEO & President. “A strong CRA is still vital to America’s low-income communities of color. And, we must continue to hold financial institutions and the entire regulatory system accountable to the harm they’ve done.” Greenlining submitted a comment letter outlining its analysis of, and key improvements to the regulators’ Notice of Proposed Rulemaking. Highlights of the letter include:
“How can we expect our nation’s anti-redlining law to work without addressing this country’s history of systemic racism?” she continued. “Regulators must strengthen and modernize investments in communities that were historically exploited and continue to experience severe climate and economic inequities. Our future depends on it.” said Gore-Mann. To read Greenlining’s comment letter and additional information about the organization’s push to strengthen the CRA, please visit our website at www.greenlining.org. Back To News |
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