Agencies release 2023 list of distressed, underserved communities

Bank Regulatory Federal Issues OCC FDIC Federal Reserve CRA Underserved Consumer Finance

On June 23, the FDIC, Federal Reserve Board, and the OCC released the 2023 list of distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities are eligible to receive Community Reinvestment Act (CRA) consideration. According to the joint release, the list of distressed nonmetropolitan middle-income geographies and underserved nonmetropolitan middle-income geographies are designated by the agencies under their CRA regulations and reflect local economic conditions such as unemployment, poverty, and population changes. Under CRA, banks are encouraged to help meet the credit needs of the local communities listed. For any geographies that were designated by the agencies in 2022 but not in 2023, the agencies apply a one-year lag period, so such geographies remain eligible for CRA consideration for another 12 months.