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 January 10, 2006 #06-02
E-mail: [email protected]

ACB SUPPORTS PUBLIC COMMENT ON AGENCY GUIDANCE, SEEKS EXPANSION TO INDEPENDENT REGULATORY AGENCIES

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WASHINGTON, D.C. — America’s Community Bankers has told the Office of Management and Budget that it supports a proposed bulletin to require federal agencies to seek public comment on the creation and modification of significant guidance, and urged extension of the requirement to independent regulatory agencies.

ACB said it has been of great concern to community banks that guidance has been issued “without the notice, publication and public comment safeguards provided by the rulemaking process of the APA [Administrative Procedure Act].”

ACB noted that the proposal would not include such independent regulatory agencies as the Federal Reserve Board and the Federal Deposit Insurance Corporation. “We strongly urge that all independent regulatory agencies be included in this bulletin,” either by direct application of the bulletin or by encouraging adoption of language similar to that of the bulletin.

ACB supported the proposed prohibition against the use of mandatory language in the guidance unless the words describe a statutory or regulatory requirement. “One of our concerns,” ACB said, “is that guidance issued by the banking agencies is frequently considered binding by the regulated institution.”

Any guidance should be made public in a timely way, ACB said, because some guidance issued in the past has not been easily obtained by banks, but has been available to examiners. “When the information is used to require a change in accounting, capital or regulatory compliance, the information should be available to the regulated entities,” ACB said.

Click here to read the comment letter.

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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