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 22, 2004 #04-32
E-mail: [email protected]

ACB URGES CONGRESS TO REDUCE REGULATORY BURDEN ON BANKS

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WASHINGTON, D.C. — America’s Community Bankers urged Congress today to enact legislation that would reduce the regulatory burden on community banks.

In testimony before the Senate Banking Committee, ACB board member Mark Macomber said: “ACB is concerned that community banks are significantly hindered in their ability to compete because of the cost and burden of unnecessary and outdated regulations.

“All we ask is that community banks be able to better serve consumers and small businesses in their local markets,” added Macomber, who is also president and CEO, Litchfield Bancorp, Litchfield, Conn.

Macomber endorsed 31 amendments to current law, and highlighted several in his oral remarks.

• Business Lending. ACB is seeking removal of the lending limit on small business loans and a modest increase in the limit on other commercial loans to 20 percent of assets.

“Expanded authority would enable savings associations to make more loans to small- and medium-sized businesses,” Macomber said. “That would enhance their role as community based lenders.”

• SEC Parity. ACB is urging statutory parity for savings associations with commercial banks offering the same trust services from certain registration requirements of the Investment Advisors Act of 1940 and the Securities Exchange Act of 1934.

“As more savings associations engage in trust activities, there is no substantive reason to subject them to different requirements,” said Macomber.

• Interstate Branching. ACB strongly supports removing unnecessary restrictions on the ability of national and state banks to engage in interstate branching. ACB also recommended that Congress eliminate states’ authority to prohibit an out-of-state bank or bank holding company from acquiring an in-state bank that is less than five years old.

Macomber said new branching rights should not be available to newly acquired or chartered industrial loan companies with commercial parents that derive more than 15 percent of revenues from non-financial activities.

• Community Reinvestment Act. ACB is urging an amendment to the Community Reinvestment Act to increase the limit for banks to participate in the small bank examination program to $1 billion in assets from the current $250 million.

Macomber cited a Congressional Research Service report estimating that the streamlined CRA would save a bank 40 percent in compliance costs. “That would allow community banks to invest even more in their local communities,” he said.

Click here to read the Testimony

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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