WASHINGTON — Lawmakers on Capitol Hill say more needs to be done to make sure minority communities are getting the financial help they need during the coronavirus pandemic.
The House of Representatives Financial Services Committee met Thursday to question financial regulation officials about how they’re serving people of color.
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As COVID-19 cases continue to surge across the country, regulators should be fully focused on pandemic response, but instead they have issued deregulatory rules that harm our communities and make our financial system weaker. This is unacceptable. | https://t.co/KoMPnJ2fbp
— Financial Svcs Cmte (@FSCDems) November 12, 2020
A report by the committee says banks generally lack diversity within their senior ranks and their corporate boards, so there are concerns about that impacting the approval of loans and financial options offered to minority communities.
“The surprise of the COVID event is gone, replaced by a clear review of its economic consequences,” said Randal Quarles of the Federal Reserve System’s Board of Governors.
Among the hardest hit are communities of color.
The office of the comptroller of the currency- known as the OCC- says it started what’s called “Project Reach” over the summer, a program meant to increase engagement with minority communities.
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The agency says it was created after widespread protests broke out after the killing of George Floyd.
“The project is working to eliminate obstacles to credit for 45 million people with no useable credit score, to expand affordable housing for those who can not afford high down-payment requirements, and to reinvigorate minority banks that serve often neglected communities,” Brian Brooks of the OCC explains.
Ranking Member @PatrickMcHenry to prudential regulators at today's hearing on their #COVID response: "I would also like to commend you all again for the work you’ve done to address the effects of the pandemic on our financial system."
— Financial Services GOP (@FinancialCmte) November 12, 2020
Financial regulators say another goal has been working more with minority-owned banks.
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The House committee notes that the number of minority-owned banks has dropped by a third over the last decade.
The Democratic-led Financial Services Committee is now pushing for Congress to require banks to disclose their diversity data publicly.
11/12/2020 - Virtual Hearing - Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions during the Pandemic#LiveNow: @House Financial Services Committee plans an oversight hearing on regulator accountability. Testifying today: Board of Governors of the Federal Reserve System Vice Chairman Randal Quarles, acting U.S. Comptroller of the Currency Brian Brooks, Federal Deposit Insurance Corporation Chairman Jelena McWilliams and National Credit Union Administration Chairman Rodney Hood. #WATCH:
Posted by House Committee on Financial Services on Thursday, November 12, 2020
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