4 Bank Regulatory Areas to Watch in 2020

By Mark Castellani on The Capital

SAFE Banking Act, CRA Overhaul, GSE Reform, NSFR

1) SAFE Banking Act

In September, the House passed H.R.1595, the Secure and Fair Enforcement (SAFE) Banking Act of 2019, to create protections for banks that provide financial services to legitimate cannabis-related businesses, with support from both Democrats and Republicans. The bill protects banks from federal regulations for accepting proceeds from cannabis-related companies while enhancing AML provisions to ensure illicit funds do not enter the banking system.

2) CRA Overhaul

In early December, the FDIC and the OCC released a proposal to modernize the Community Reinvestment Act (CRA) regulations. The proposed rules are intended to increase bank activity in low- and moderate-income communities, greater access to banking services, more responsible lending, and improvements to critical infrastructure. The proposals will clarify what qualifies for credit under the CRA, enabling banks and their partners to implement better reinvestment activities…