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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 20, 2004 #04-03
E-mail: [email protected]

ACB COMMENTS ON CRA PROPOSAL

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on the proposal today to allow more banks to qualify for the Community Reinvestment Act small bank streamlined evaluations:

America’s Community Bankers has been urging the federal banking regulators for more than two years to expand the definition of “small bank” eligibility for streamlined Community Reinvestment Act examinations. We are delighted that the agencies are proposing to increase the limit to $500 million in assets.

Community banks with assets of more than $250 million — the existing cutoff for using the streamlined procedure — cannot compete with the very large institutions for CRA investments. These smaller institutions face increasing difficulty in achieving “satisfactory” ratings under the large bank investment test.

It’s simply not fair to judge the CRA performance of banks with $250 million in assets on the same basis as multi-billion — and now trillion — dollar banks. The proposal begins to remedy this inequity.

ACB strongly supports the intent of the Community Reinvestment Act, and we will work with the federal agencies to improve its implementation, examination procedures, and the inherent regulatory burden it continues to impose on our members.

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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