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 June 29, 2005 #05-42
E-mail: [email protected]

ACB REQUESTS WITHDRAWAL OF COMMERCIAL LOAN CLASSIFICATION PROPOSAL

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

WASHINGTON, D.C. — America’s Community Bankers has requested that the federal banking regulators withdraw proposed guidance that would restructure the decades-old system of classifying the quality of commercial loans.

ACB said in its comment letter that the proposal would place additional operational burdens on community banks with little benefit. “We have serious concerns on whether this guidance can be reasonably applied by community banks, and are unconvinced that it would result in much, if any, improvement over what is provided under the existing framework for many of those institutions,” ACB said.

“The guidance proposes a framework that would force unnecessary complexity into the existing, well-understood, widely recognized and long-standing credit rating system insured depositories have been using for over 60 years,” ACB added.

ACB said it supports multi-national banks preparing for Basel II capital compliance and other large, complex banks using the proposed two-dimensional loan grading system that includes some of the principles in the proposed guidance. But ACB urged the regulators not to require smaller, less complex banks to implement the proposed sophisticated framework.

Click here for 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-