Regulators propose overhaul to law governing how banks lend to low-and-middle income communities

Regulators (OCC and FDIC) proposed the first major overhaul of the Community Reinvestment Act in nearly 30 years, shifting exams to weigh lending more than branches or local deposits.
The small-bank threshold rises to $1 billion (with $1–$10B as “intermediate”), cutting about 800 banks out of parts of the law and leaving roughly 86 banks—about 3%—subject to the full rules.
New limits and transparency requirements on community-development grants aim to curb donations to national/“activist” groups, drawing criticism that it could reduce funding for local and rural organizations.