ICBA expressed concern with a CDFI Fund proposal that would diminish the number of Community Development Financial Institutions and threaten the survival of the program.
The fund is proposing to revise its application and annual certification requirements to include a series of questions related to every financial product and service applicants offer. In a comment letter, ICBA said the updates could arbitrarily discourage or foreclose upon certain products.
"Rather than add to the administrative burden of demonstrating compliance with regulations, ICBA recommends that the Fund explore opportunities to leverage data and resources that community banks already produce and provide as the result of being examined and supervised entities," ICBA said.