On October 24, 2023, the federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. On this episode of Calling All Bank Directors, our guest Ken Thomas, a leading expert in CRA for many years, explains what boards of directors can do to support compliance with the new regulation.

AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations.

Unless the regulation is overturned or withdrawn by the agencies, bank boards and management of banks of $600 million or more will face huge challenges.

Ken is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank.

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Thanks to our guest, Ken Thomas: https://www.communitydevelopmentfund.com/about/

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

On October 24, 2023, federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. The rule will move banks away from the original intent of CRA, which was to encourage banks to meet the credit needs of their low to moderate income communities.

In this episode of Calling All Bank Directors, Ken Thomas, a leading expert in CRA for many years, explains what the regulation says and what has changed from the old rule. He believes that the new rule will result in nearly 10 times the number of failing banks – from just over one percent to around 10 percent.

AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations

Ken Thomas is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank.

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Thanks to our guest, Ken Thomas: https://www.communitydevelopmentfund.com/about/

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

The recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank have upped the ante for your next examination. Expect it to be rigorous and searching for opportunities to take enforcement action against your bank, directors, and officers.

Banking agencies have ramped up their review of bank liquidity, investments, and asset/liability management (ALM) in response to the failures and a flood of enforcement actions is anticipated. To help banks and their boards of directors and officers prepare, host David Baris is joined by David D. Gibbons to discuss preparing for your next examination.

David Gibbons has extensive financial services experience with a unique blend of public and private sector experiences as a senior bank regulator, a practicing Chief Risk Officer, a financial services risk management and regulatory advisor, and a testifying expert. He serves as a member of AABD’s Task Force studying how a bank director’s risk of personal liability may be mitigated consistent with safe and sound banking.

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Thanks to our guest, David Gibbons: https://daviddgibbons.com.

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.