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 July 19, 2005 #05-47
E-mail: [email protected]

ACB APPLAUDS INCREASE IN CRA SMALL BANK EXAM THRESHOLDS

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on expanding the Community Reinvestment Act small bank examination option to banks of up to $1 billion in assets:

America’s Community Bankers applauds the FDIC — and the Federal Reserve Board and the Office of the Comptroller of the Currency to follow — for adopting a final rule making the streamlined Community Reinvestment Act examination option available to community banks with up to $1 billion in assets from the current $250 million, and relieving CRA loan data collection and reporting requirements.

It’s a step forward in recognizing that the compliance burden for a $250 million bank is far greater than that for a $250 billion bank.

Smaller banks will now be able to use valuable and scarce human and financial resources in truly understanding and meeting the needs of their communities rather than trying to prove compliance with broader examination requirements.

ACB continues to believe that the revisions previously made by the Office of Thrift Supervision provide small banks with more flexibility in meeting CRA requirements. ACB also believes that it was not necessary to expand the community development test, although it is a better alternative than the current three-pronged lending, investment and services tests for banks with assets between $250 million and $1 billion.

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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