Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-21-2005
March 22, 2005
Community Reinvestment Act
Joint Notice of Proposed Rulemaking
Summary: The federal bank regulatory agencies are seeking comment on the attached proposed rule regarding the
Community Reinvestment Act (CRA). The rule would reduce regulatory burden for banks with assets between $250
million and $1 billion, while encouraging meaningful community development loans, investments and services by these
banks in their communities. Comments must be received by May 10, 2005.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
CRA Officer
Related Topics:
12 C.F.R. Part 345 Community Development Credit
Attachment:
Joint Notice of Proposed Rulemaking - PDF 114k
Contacts:
Robert W. Mooney, Assistant Director and Chief, CRA
and Fair Lending Section, at rmooney@fdic.gov or
202-898-3911.
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2005/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through
the FDIC's Public Information Center, 801 17th Street,
NW, Room 100, Washington, DC 20434 (1-877-275-
3342 or (703) 562-2200).
Highlights:
For banks with assets between $250 million and $1 billion,
the proposal would:
• Eliminate CRA loan data collection and reporting of small
business, small farm and community development loans.
• Replace the separately rated lending, investment and
service test requirements with two separately rated tests:
(1) the existing streamlined small bank lending test; and
(2) a new community development test permitting more
flexible levels of community development loans,
investments and services depending on the business
strategy and capacity of the bank and the opportunities
and needs of its community.
For banks of any size, the proposal would:
• Expand the term “community development” to include
certain community development activities in
“underserved” rural areas and designated disaster areas.
• Clarify the effect illegal credit activities may have on a
bank’s CRA performance.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-21-2005
March 22, 2005
Community Reinvestment Act
Joint Notice of Proposed Rulemaking
Summary: The federal bank regulatory agencies are seeking comment on the attached proposed rule regarding the
Community Reinvestment Act (CRA). The rule would reduce regulatory burden for banks with assets between $250
million and $1 billion, while encouraging meaningful community development loans, investments and services by these
banks in their communities. Comments must be received by May 10, 2005.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
CRA Officer
Related Topics:
12 C.F.R. Part 345 Community Development Credit
Attachment:
Joint Notice of Proposed Rulemaking - PDF 114k
Contacts:
Robert W. Mooney, Assistant Director and Chief, CRA
and Fair Lending Section, at rmooney@fdic.gov or
202-898-3911.
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2005/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through
the FDIC's Public Information Center, 801 17th Street,
NW, Room 100, Washington, DC 20434 (1-877-275-
3342 or (703) 562-2200).
Highlights:
For banks with assets between $250 million and $1 billion,
the proposal would:
• Eliminate CRA loan data collection and reporting of small
business, small farm and community development loans.
• Replace the separately rated lending, investment and
service test requirements with two separately rated tests:
(1) the existing streamlined small bank lending test; and
(2) a new community development test permitting more
flexible levels of community development loans,
investments and services depending on the business
strategy and capacity of the bank and the opportunities
and needs of its community.
For banks of any size, the proposal would:
• Expand the term “community development” to include
certain community development activities in
“underserved” rural areas and designated disaster areas.
• Clarify the effect illegal credit activities may have on a
bank’s CRA performance.Inactive