WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy at Better Markets, released the following statement upon the release of a recently filed comment letter, which raises significant concerns regarding the proposed overhaul of the rule implementing the Community Reinvestment Act (CRA):
“The federal banking regulators’ proposal to rescind the 2023 CRA rule is a serious misstep—and one that will hurt American families and Main Street.
“The CRA was created to ensure that banks serve the credit needs of all communities, especially low- and moderate-income neighborhoods. While the 2023 rule wasn’t perfect, it took a meaningful step forward. It encouraged banks to invest in underserved areas and offered some protection against discriminatory practices. The rule needed responsive improvement, not rescission. Rolling back to the outdated 1995 framework ignores how dramatically banking has changed in the last two decades. Today, more than two-thirds of Americans rely on mobile and online banking. Moreover, some banks operate entirely online. Yet the 1995 rule exclusively ties CRA obligations to a bank’s physical headquarters—an outdated approach in the digital age.
“The regulators’ justification—that the 2023 rule is under litigation and causes uncertainty for banks—is an insufficient reason for retreating from progress. The real-world consequences are clear: low homeownership rates in underserved communities, including for Black, Hispanic, and low-income families, and widening racial and economic wealth gaps. These are not abstract policy failures—they are lived realities for millions of Americans.
“What’s especially troubling is the disconnect between this rollback and the recent Executive Order titled Guaranteeing Fair Banking For All Americans. The Executive Order claims to fight discrimination in banking, yet it makes no mention of communities of color, low-income families, or historically underserved groups. That omission speaks volumes.
“If regulators are serious about fair banking, they must modernize—not dismantle—rules that promote the obligation of banks to invest fairly in their communities. All Americans deserve a financial system that works for Main Street, not just for Wall Street.”
The Comment Letter is available here.
Better Markets has produced a number of previous comments and analysis on both the challenges and successes associated with the CRA, linked here, here, and here.
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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.
