ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release January 10, 2006 #06-01
E-mail: [email protected]

ACB URGES LONGER TIME FRAME FOR CRA CREDIT IN HURRICANE AREAS

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

WASHINGTON, D.C. — America’s Community Bankers has urged the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to extend the time frame for Community Reinvestment Act credit for redevelopment projects in the Gulf Coast hurricane areas.

While ACB supported the one-year lag period from the expiration of the official designated disaster area proposed by the regulators, ACB urged time period flexibility. “We are concerned that a one-year lag time and precise definitions of the duration of the disaster may not be applicable in areas that have been significantly damaged by an extraordinary natural disaster,” ACB said in its comment letter. ACB said the magnitude of the rebuilding effort “will not be known for some years.”

ACB supported the proposal’s clarifications that CRA community development credit applies to all banks, not just the intermediate small bank category created in the CRA revisions last year by the Fed, FDIC and the OCC; that certain activities related to disaster relief will receive positive consideration even if neither the activity nor the bank itself is located in a designated disaster area; and that certain community development activities that provide housing for middle- and upper-income families may be given CRA consideration.

ACB said it continues to support banks’ requests for the activities of an affiliate to be considered for CRA credit if the activities are in the assessment area.

Click here to read the comment letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-