Washington, D.C. (Dec. 12, 2019) — Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today's Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency proposed rule on the Community Reinvestment Act.
"ICBA and the nation's community banks appreciate regulatory efforts to modernize the Community Reinvestment Act. Current regulations and approaches are outdated and can serve as barriers to implementing CRA’s very mission, so we encourage participation by all banking regulators, including the Federal Reserve.
"While ICBA continues to review today's proposal, ICBA-supported provisions of it would modernize the definition of small-business loans, promote lending to family farms, and provide a list of pre-approved CRA activities to help promote fair, equitable, consistent and transparent implementation of the law. Further, an ICBA-advocated provision allowing community banks under $500 million to opt into the revised framework will avoid a one-size-fits-all approach.
"The CRA mission of maximizing the availability of financial services and credit in local communities is the essence of community banking. Community banks’ success depends on the success of their communities. ICBA will fully review the proposal with our member community banks to assess how it will affect their ability to meet the needs of their communities, including low- and moderate-income individuals. And we look forward to continuing to work with all relevant regulatory agencies on the CRA modernization initiative."
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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