WASHINGTON, D.C.— Today, Phillip Basil, Director of Banking Policy at Better Markets, issued the following statement regarding the comment letter it filed and two comment letters it signed onto regarding the Office of the Comptroller of the Currency’s proposal to rescind its 2020 Community Reinvestment Act rule:

“Better Markets has submitted a comment letter in full support of the Office of the Comptroller of the Currency’s (OCC) proposal to rescind its seriously flawed 2020 rule regarding the Community Reinvestment Act (CRA). We also joined the letters of the National Community Reinvestment Coalition and the U.S. Impact Investing Alliance.

“The CRA requires the federal banking regulatory agencies to ensure the banks they supervise and regulate are serving the banking needs of the low-to-moderate income (LMI) communities in which they do business. The OCC’s 2020 rule was finalized without the participation of the other banking agencies—the Federal Reserve and the Federal Deposit Insurance corporation—and had numerous flaws. The senseless provisions of the rule have the effect of incentivizing banks to engage in activities that have a lower substantive impact on and divert financial activities away from LMI communities.

“For far too many Americans, the promises of the CRA have remained unfulfilled. The wealth gap has grown significantly over the last several decades, and many Americans remain un- or under-banked. These issues are especially true for economically marginalized communities of color. Access to banking products and services provide a foundational means of enhancing financial well-being of LMI households. The OCC’s 2020 rule must be rescinded as wholly and immediately as possible, and the banking agencies must work together to put out a sensible, modernized CRA rule that implements an effective set of standards and fulfills the promises of the CRA.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.