Treasury Eases Paperwork Hassle for Small Banks' Neighborhood Plans
Published Date: 12/22/2025
Proposed Rule
Summary
The government is making it easier for small community banks to create and get approval for their Community Reinvestment Act (CRA) plans. This new, simpler process means less paperwork and hassle, helping banks better serve their neighborhoods. Banks have until February 20, 2026, to share their thoughts on these changes before they become official.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
Easier CRA Plans for Community Banks
If your bank is a community bank (the OCC defines community banks as banks with up to $30 billion in assets), the OCC is proposing a simplified strategic plan process under the Community Reinvestment Act to make the strategic plan option more accessible and less burdensome. The proposal is intended to reduce paperwork and help community banks focus resources on meeting community credit needs; comments are due by February 20, 2026.
Templates and Elective Goals Provided
The OCC would publish a Simplified Strategic Plan Form that includes example measurable goals (called elective goals) and guidance on performance measures like dollar amounts or percentages of Tier 1 capital that community banks can adopt. Community banks may use those elective goals or create custom goals based on their performance context to build their proposed strategic plans.
No New Requirements; Goals Not Safe Harbors
The proposed guidance does not create any new regulatory requirements for community banks, and the elective goals in the Simplified Strategic Plan Form are examples rather than guarantees of approval. The OCC would approve a strategic plan only after the bank completes required public engagement and the OCC evaluates the plan using the CRA regulation's approval criteria.
Elective Goals May Be Updated Over Time
The OCC says it will periodically assess and, if appropriate, update the elective goals in the Simplified Strategic Plan Form to account for changing economic conditions, public comments, or other relevant information. Community banks should expect that the examples and guidance in the form could change over time.
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