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 December 21, 2000 #00-141
E-mail: [email protected]

ACB DEEPLY DISAPPOINTED IN CRA SUNSHINE FINAL RULE

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Statement by Robert R. Davis, managing director for government relations, America’s Community Bankers, on the CRA sunshine regulation adopted by the banking regulators today:

America’s Community Bankers is deeply disappointed by the Community Reinvestment Act sunshine regulation adopted today. While the federal banking regulators made some modest improvements and helpful clarifications, the changes incorporated in the final rule simply do not go far enough.

The rule’s requirements are still overly broad and will impose significant paperwork, regulatory and cost burdens on banks that far outweigh any possible benefits. Community banks, especially small- and mid-sized banks, will be forced to spend considerable resources complying with the disclosure, reporting and recordkeeping requirements associated with CRA-related agreements rather than doing what really matters — serving their communities with affordable credit and financial services.

Fewer creative and innovative partnerships will be formed because of competitive and privacy concerns, and business arrangements beneficial to the community may be disrupted because of an unwillingness to disclose contracts for proprietary and competitive reasons.

It is unfortunate that the federal banking regulators ignored our suggestion to issue a new proposal based on the many comments received. Ultimately, it is in the best interests of insured institutions and their communities to develop a new and more workable solution.

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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