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The House Committee on Financial Services held a hearing about the Community Reinvestment Act (CRA) on February 13. The hearing was held to commemorate the 30-year anniversary of CRA and to examine its impact and success on the provision of loans, investments and services to under-served communities. The hearing also examined challenges that prevent the law from being more effective.
Three panels testified during the hearing including regulators, consumer groups and industry representatives. Connecticut Department of Banking Commissioner Howard Pitkin testified on behalf the Connecticut agency and the Conference of State Bank Supervisors (CSBS).
In his testimony, Pitkin discussed CRA laws in Connecticut. He said that Connecticut enacted a state CRA law in 1990 that established general requirements for Connecticut banks to reinvest in their communities. In 2001, it enacted a state law that set similar requirements for Connecticut state-chartered community credit unions. State-chartered credit unions in Massachusetts are also subject to state CRA requirements.
The Connecticut Department of Banking is a member of NASCUS; Pitkin referenced the agency’s NASCUS membership during his remarks. Other regulatory agencies that testified during the hearing included the Federal Reserve Board, Comptroller of the Currency, Federal Deposit Insurance Corp., and the Office of Thrift Supervision.
The general consensus among the regulators who testified on February 13 was that CRA has played a significant and positive role in communities. However, the regulators said that before it is expanded, specific questions need to be answered, including what type of institutions CRA would cover, its scope, how to enforce it and what federal agencies would be responsible for enforcement.
To view testimony from the hearing, follow this link.
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