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FDIC Federal Register Citations Knoxville (TN) CDC RE: RIN 3064-AC50: Notice of Proposed Rulemaking to 1 2 CFR Part 345 Knoxville's Community Development Corporation (KCDC) would like to take this opportunity to comment on the FDIC's proposed changes to Community Reinvestment Act (CRA) requirements. We oppose the change to the definition of "small bank". Currently a small bank is defined as a bank with assets of $250 million or less. The proposed rule would increase the asset threshold to $1 billion, thereby allowing banks now classified as "large banks" to fall under the small bank definition. Large banks must undergo a full CRA examination; small banks are not subject to the investment and service tests of the CRA. We believe that this will result in less investment in low and moderate income communities. The proposed regulatory changes would also allow mid-size banks to choose which community development activity they will do. Current regulation requires these banks to engage in three types of activities; community development lending, investment and services. Reducing the number of activities in low and moderate income communities will result in less community development activity and place these areas at a distinct disadvantage compared to more affluent areas. This goes against the original intent and spirit of CRA. The regulations also eliminate publicly available data on small business
lending by midsize banks. Small business is a critical component of economic
development in Knoxville. Without data, community groups and citizens can
not hold banks responsible for lending to small businesses in their neighborhoods. Thank you for providing the opportunity to comment on this proposed rule.
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Last Updated 11/18/2004 | regs@fdic.gov |