Bloomberg Law, August 9, 2022, Banks Fear Top Grades Out of Reach in Community Lending Rewrite
Around 90% of banks receive a satisfactory grade and another 10% get outstanding grades, according to a comment letter from the National Community Reinvestment Coalition, an organization that advocates for fairness in lending.
The law would be more effective if the Fed, FDIC and OCC ushered in a new exam process that “more accurately revealed distinctions in performance,” the NCRC said.
“More banks would be identified as significantly lagging their peers, which would motivate them to improve their ratings and increase their reinvestment activity,” the community group said in its letter.
