and deceptive lending practices. in the months ahead, i look forward to receiving input from the many stakeholders about the path forward on modernizing cra regulations. i want to express my commitment to supporting the goals of cra as we revise the regulations to better align them with current banking practices. in closing, i want to express my appreciation to you for inviting me to join you today. i am very impressed with the important ways different kinds of organizations represented in this room are working in partnership to promote economic development here in your community.

in the ways that banks serve their customers and in the challenges faced by low - and moderate - income communities. the time is ripe to modernize the cra regulations to make them more effective in making credit available in low - and moderate - income areas at a time when technological and structural changes in the banking industry allow banks to serve customers outside of the areas with branches that have traditionally defined a bank ’ s community. as we update the rules, it should be possible to achieve better outcomes - - both providing banks with the greater clarity and predictability they seek while also facilitating better provision of credit, investments, and banking services in low - and moderate - income areas. there are several outcomes that we will work toward in the interagency rule - writing effort. first, we should seek to modernize the definition of assessment areas in such a way that the core focus remains the credit needs of local communities. the definition in the existing cra regulation of a bank ’ s assessment area - - that is, the area in which we evaluate a bank ’ s cra performance - - reflects a banking environment when interstate banking was not yet allowed, and physical branches were necessary to serve the deposit and lending needs of bank customers. technological advances and changing consumer preferences have made it possible for banks to serve customers far outside of their physical branches - - for example, online and on mobile devices. clearly, it is time to find a way to expand the area in which the agencies evaluate a bank ’ s cra activities. at the same time, it is important to retain a focus on place - - and in particular the credit needs of local communities. we are confident that there are ways to expand the area where we evaluate a bank ’ s cra performance without losing the regulation ’ s focus on the unique role banks play in meeting local credit needs and providing services that are only possible by using branches. treasury ’ s recommendation that the agencies revisit the regulations to allow cra consideration for a bank ’ s activities in its assessment area, as currently delineated around branches and deposit - taking automated teller machines, as well as in low - and moderateincome areas outside that branch footprint, is a reasonable place to start our interagency discussions. second, banks should be encouraged to seek opportunities in areas that are underserved. currently, a bank ’ s performance in its major markets is evaluated most closely and weighs most heavily in its cra rating. this emphasis has resulted in what banks and