A national banking regulator took the first step Tuesday toward rewriting rules for lending in lower-income neighborhoods, an effort that could allow institutions to redirect billions of dollars spent on loans and investments.
In a release seeking feedback from the public, the Office of the Comptroller of the Currency proposed new approaches to evaluating banks on their reinvestment activities. One controversial idea in the proposal would reduce the emphasis on loans and investments made locally, and instead create a ratio to measure total low-income spending by bank size.
