US banks must now meet community lending rules that were in place before 2024

US banking regulators are rolling back recent changes to rules about how banks lend in low-income communities. This means banks will go back to the older, stricter requirements for community reinvestment.

The Community Reinvestment Act (CRA) forces banks to lend in the communities where they take deposits, especially in low-income areas. The previous administration tried to loosen these rules, making it easier for banks to meet their obligations without actually investing in those communities. This reversal means banks will again face pressure to make tangible investments in local development projects and small businesses in specific neighborhoods.