FOR IMMEDIATE RELEASE
ICBA Applauds FDIC Recommendations To Reduce Regulatory Burden
Washington, D.C. (June 23, 2004) - Independent Community Bankers of America (ICBA) is greatly pleased that FDIC Vice-Chairman John Reich made several suggestions to the Senate Banking Committee on changes long advocated by ICBA to alleviate the regulatory burden strangling the nation's community banks. In his testimony to the committee yesterday, Reich said, "Unless Congress takes action soon, community banks may indeed become an endangered species."
Among the ICBA-supported changes Reich recommended were:
Increasing the asset size of banks eligible for the streamlined Community Reinvestment Act examination.
Reducing or eliminating the annual privacy notice requirement for community banks with limited information sharing practices.
Easing restrictions on the 3-day waiting period before consumers can receive home secured loan proceeds.
Increasing flexibility for flood insurance requirements.
In comment letters and meetings with the FDIC and other regulators, ICBA has raised these and other changes as much-needed steps to reduce regulatory burden. ICBA members believe that these changes would make it easier for banks to serve their customers and open up bank resources for lending and customer service.
ICBA Chairman Dale Leighty, chairman and president of First National Bank of Las Animas in Colo., said, "John Reich knows the issues and community banking, and he recognizes that Congress must take steps to reduce regulatory burden before it's too late. We look forward to continuing work with the FDIC and the other regulatory agencies to develop a plan of attack that can eliminate unnecessary burden without compromising consumer protection or the safety and soundness of the nation's community banks."