Banks Face Shake-Up of Low-Earnings Lending Guidelines

WASHINGTON—High U.S. banking regulators have been struggling for greater than 5 years to replace anti-redlining guidelines geared toward making banks lend extra in lower-income communities. On Tuesday, they plan to finish a revamp of them for the period of on-line banking.

The 1977 Group Reinvestment Act sought to finish banks’ historic apply of denying or limiting monetary companies in minority neighborhoods. The present guidelines—that are practically 30 years previous—typically require banks to serve everybody within the communities surrounding their branches, together with lower-income folks.