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 February 13, 2003 #03-07
E-mail: [email protected]

ACB STRONGLY SUPPORTS BILL TO ALLOW BANKS TO PAY INTEREST ON BUSINESS CHECKING

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WASHINGTON, D.C. — America’s Community Bankers said today that it “strongly supports” a bill that will give community banks an additional tool to serve small business customers by allowing banks to pay interest on business checking accounts.

The bill was introduced today by Reps. Pat Toomey (R-Pa.) and Paul Kanjorski (D-Pa.), who previously sponsored legislation that overwhelmingly passed the House. The House Financial Services Committee is expected to hold a hearing during the week of Feb. 24.

“This longstanding ACB priority objective would give community banks new opportunities to compete in the financial services marketplace, and eliminate regulatory restrictions that handicap small businesses,” said ACB President and CEO Diane Casey Landry. “ACB strongly supports this important legislation.”

The bill would repeal the Depression era restrictions on banks paying interest on business checking accounts. Under current law, no interest may be paid on demand accounts; banks may pay interest only on NOW accounts held by individuals, sole proprietorships, nonprofit organizations and governmental units.

“These restrictions limit the ability of community banks to serve the financial needs of their business customers,” said Casey Landry. “Small businesses would benefit from competitive rates of return on transaction balances, which would strengthen their financial condition and add to local economic growth and job creation,” she said.

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.

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