PRESS RELEASE
Federal Deposit Insurance Corporation
January 20, 2004 Media Contact:
David Barr (202) 898-6992
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-05-2004
FDIC Approves Notice of Proposed Rulemaking Regarding the Community
Reinvestment Act of 1977
FOR IMMEDIATE RELEASE
The Federal Deposit Insurance Corporation (FDIC) today announced approval of a joint
interagency notice of proposed rulemaking (NPR) regarding the Community
Reinvestment Act (CRA). The CRA directs the federal bank and thrift regulatory
agencies to assess a financial institution's record of meeting the credit needs of its
entire community, and to consider that record when acting on certain applications for
deposit facilities. The Federal Reserve Board, the Office of the Comptroller of the
Currency, and the Office of Thrift Supervision are expected to announce their approval
shortly.
When the agencies adopted the current CRA regulations in 1995, they committed to
review them by 2002. Accordingly, an Advance Notice of Proposed Rulemaking (ANPR)
was issued on July 19, 2001. Today's NPR is the result of the interagency review and
consideration of comments received in response to the ANPR.
The NPR proposes to amend the CRA regulations in two fundamental ways. First, the
proposal would amend the definition of "small bank." Specifically, the definition of small
bank would change from a bank with total assets of less than $250 million that was
independent or an affiliate of a holding company that had total assets of less than $1
billion to a bank with total assets of less than $500 million, with no consideration of
holding companies.
Second, the NPR proposes to amend the agencies' CRA regulations to expand and
clarify the provision that an institution's CRA evaluation is adversely affected when the
institution has engaged in specified discriminatory, illegal, or abusive credit practices in
connection with certain loans.
Federal Deposit Insurance Corporation
January 20, 2004 Media Contact:
David Barr (202) 898-6992
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-05-2004
FDIC Approves Notice of Proposed Rulemaking Regarding the Community
Reinvestment Act of 1977
FOR IMMEDIATE RELEASE
The Federal Deposit Insurance Corporation (FDIC) today announced approval of a joint
interagency notice of proposed rulemaking (NPR) regarding the Community
Reinvestment Act (CRA). The CRA directs the federal bank and thrift regulatory
agencies to assess a financial institution's record of meeting the credit needs of its
entire community, and to consider that record when acting on certain applications for
deposit facilities. The Federal Reserve Board, the Office of the Comptroller of the
Currency, and the Office of Thrift Supervision are expected to announce their approval
shortly.
When the agencies adopted the current CRA regulations in 1995, they committed to
review them by 2002. Accordingly, an Advance Notice of Proposed Rulemaking (ANPR)
was issued on July 19, 2001. Today's NPR is the result of the interagency review and
consideration of comments received in response to the ANPR.
The NPR proposes to amend the CRA regulations in two fundamental ways. First, the
proposal would amend the definition of "small bank." Specifically, the definition of small
bank would change from a bank with total assets of less than $250 million that was
independent or an affiliate of a holding company that had total assets of less than $1
billion to a bank with total assets of less than $500 million, with no consideration of
holding companies.
Second, the NPR proposes to amend the agencies' CRA regulations to expand and
clarify the provision that an institution's CRA evaluation is adversely affected when the
institution has engaged in specified discriminatory, illegal, or abusive credit practices in
connection with certain loans.
The NPR also proposes to revise the regulations to provide that the CRA disclosure
statement would contain the number and amount of the institution's small business and
small farm loans by census tract. Currently, such loans are disclosed in the aggregate.
Comments from the public must be received no later than 60 days following publishing
of the NPR in the Federal Register.
statement would contain the number and amount of the institution's small business and
small farm loans by census tract. Currently, such loans are disclosed in the aggregate.
Comments from the public must be received no later than 60 days following publishing
of the NPR in the Federal Register.