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 November 21, 2000 #00-132
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS STRONGLY SUPPORTS EXCEPTIONS TO LOANS-TO-ONE-BORROWER LIMITS

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

WASHINGTON, D.C. — America’s Community Bankers has said that it strongly supports additional exceptions for community banks to the federal loans-to-one-borrower limit, as proposed in a pilot program by the Office of the Comptroller of the Currency.

ACB said it believes the proposed exceptions for real estate and small business loans “are necessary and appropriate, and will further and assist community banks in their critical role as providers of real estate and small business credit to communities throughout the country.”

Under the proposal, the exceptions would allow a national bank to adopt its home state’s higher limits, if any, for residential and small business loans. The pilot federal limit in each category would be 10 percent of a bank’s capital and surplus or $10 million, whichever is less. The OCC proposal would include an aggregate limit for the exceptions of 100 percent of a bank’s capital and surplus. To be eligible for the exceptions, a bank would be required to be well capitalized and CAMELS-rated 1 or 2.

The Office of Thrift Supervision already has statutory authority to allow savings associations to exceed the general loans-to-one-borrower limitation for the development of residential housing units under certain circumstances. In further support of the OCC proposal, ACB said the OTS exception “has been an important factor in enabling savings associations to meet the housing needs of the communities.”

ACB’s Comment Letter is LINKED.

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-