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 22, 2005 #05–5
E-mail: [email protected]

ACB COMMENTS ON FDIC-OCC CRA PROPOSAL

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on the decision today of the FDIC and the Office of the Comptroller of the Currency to issue a revised proposal that would change the Community Reinvestment Act regulations:

America’s Community Bankers would have preferred that the FDIC and the OCC adopt a final regulation making the streamlined small bank CRA examination available to banks with up to $1 billion in assets. Importantly, the increase to $1 billion in assets is part of the new proposal.

Other aspects of the new proposal, however, will require additional analysis to determine whether they will, in reality, reduce regulatory burden. For example, adding a second test — the community development test as a separate test to the bank streamlined lending test — may be more burdensome. Study will also be required of the proposed narrowing of the definition of community development activities in rural areas.

We would urge the FDIC, the Office of the Comptroller of the Currency and the Federal Reserve Board to follow the lead of the Office of Thrift Supervision in adopting a final rule that provides true regulatory relief without diminishing banks’ commitment to reinvesting in their communities.

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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