#068: CRA Tips: Regulatory Change Part II: Reputational Risk

Regulators are continuing to enhance their focus on oversight, supervision, and enforcement, and the CRA is no exception. We expect this increased scrutiny to ramp up throughout 2023. What was acceptable before is no longer acceptable in today’s environment, and the bar has been raised. Embedded CRA rating deflation in the new proposed CRA rule opens us up to more reputational risk if we aren’t able to get out and serve our communities.

There’s increased pressure on banks to defend their current banking practices and the way they redeploy capital into local communities in an equitable way. This translates into more community input and expectations, which increase reputational risk.

We need to consider this as we work to build out our CRA strategic plans and adapt to the new rule once it’s implemented. Included here are some strategic discussion points that you may wish to have with your key stakeholders.

Listen in to part two of this three part series on regulatory change.
I have also compiled a free resource that will support you as you start to prepare your bank for this monumental shift in managing risk and your CRA program. Get the CRA Regulatory Change Checklist here: https://cratoday.com/regulatory-change-checklist/

CRA Today Website: https://cratoday.com/

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Linda Ezuka, LinkedIn https://www.linkedin.com/in/linda-ezuka-cra-today/

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