Regulatory Alerts2020-05-21
CA 20-9: Investments in Areas with Elevated Poverty and Public Welfare Investments
The Board of Governors of the Federal Reserve System issued guidance clarifying that investments in areas with poverty rates of 20 percent or more qualify as public welfare investments under the Federal Reserve Act. This determination allows state member banks to treat such elevated poverty areas as low- or moderate-income areas for regulatory purposes, thereby permitting eligible investments and post-notice procedures. The rule applies to all institutions supervised by the Federal Reserve, including those with total consolidated assets of $10 billion or less.
Share