On October 24, 2023, the federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. The rule will move banks away from the original intent of CRA, which was to encourage banks to meet the credit needs of their low to moderate income communities.

In this episode of Calling All Bank Directors, Ken Thomas, a leading expert in CRA for many years, explains what the regulation says and what has changed from the old rule. He believes that the new rule will result in nearly 10 times the number of failing banks – from just over one percent to around 10 percent.

AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations.

Ken Thomas is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank.

Listen to episode 51 below or subscribe wherever you get your podcasts.