"New Anti-Discrimination Rule Puts Banks to the Test"

Bank regulators have introduced a new rule to combat lending discrimination, requiring banks to increase lending to low- and moderate-income communities. The rule, which marks the most significant revision to the Community Reinvestment Act in nearly three decades, has drawn criticism from lenders and a Federal Reserve Board member. The new framework, effective from January 2026, assesses banks' retail lending and community development financing using benchmarks based on peer and demographic data. Banks oppose the new loan-threshold test, arguing it could lead to closures or restrictions in sparsely populated areas. Fed Chair Jerome Powell defended the rule, stating it will expand access to credit and banking services in low- and moderate-income communities.