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 February 28, 2005 #05-06
E-mail: [email protected]

ACB APPLAUDS OTS CRA RULE

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Statement by Robert R. Davis, executive vice president and managing director of government relations, America’s Community Bankers, on issuance of a final rule today by the Office of Thrift Supervision revising the CRA requirements for large retail institutions:

America’s Community Bankers applauds the Office of Thrift Supervision for giving large savings associations added flexibility in serving the credit needs of their communities. This is real regulatory relief without diminishing the purpose of CRA.

The new rule addresses our longstanding concern about the burden that is imposed by a regulatory structure that is rigid and inflexible and does not take into account the differences in communities being served.

The revision provides a good alternative to the current rigid three-pronged test. The lending test continues to be counted for at least 50 percent of the CRA requirement, but savings associations will now have the flexibility to set the weightings of the investment and service tests.

Providing the flexibility to determine how much weight should be assigned to these tests will permit large savings associations to make choices involving the community that are based on what it needs.

We urge the other banking regulators to also revise their CRA rules for large retail institutions along the lines adopted by OTS.

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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