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ICBA Statement on House Financial Services Legislative Actions

Washington, D.C. (October 27, 2005) - The Independent Community Bankers of America (ICBA) issued the following statement after today's House Financial Services Committee mark up of several banking related measures:

ICBA applauds the House Financial Services Committee for moving deposit insurance reform one step closer to enactment by attaching it to a high-priority budget reconciliation package and for advancing legislation aimed at helping the victims of recent Gulf Coast hurricanes.

Action on FDIC insurance is even more urgent now. The FDIC has announced that institutions insured by the Bank Insurance Fund (BIF) likely will be required to pay premiums next year because it is expected that the BIF reserve ratio could decline below the minimum 1.25 percent target in current law.

In addition, ICBA commends the committee for advancing an ICBA-endorsed hurricane relief provision to provide up to $2,000 reimbursement to a financial institution that has cashed a check for someone from a hurricane-affected area if the check is uncollectible. ICBA was pleased the committee also passed a measure to direct federal bank regulators to give banks relief from prompt-corrective-action requirements if they become under-capitalized as a result of the hurricane in the next 18 months.

ICBA encourages the committee to continue to push forward and pass the Financial Services Regulatory Relief Act of 2005 (H.R. 3505). The bill includes provisions contained in the Communities First Act and would provide meaningful relief to community banks. ICBA opposes any amendments that would increase the business lending authority or reduce the capital requirements of the tax-exempt credit union industry.