Inactive Financial Institution Letters Community Reinvestment Act
September 22, 2004
CHIEF EXECUTIVE OFFICER (also of interest to Compliance Officer)
FDIC Extends Comment Period for Community
Reinvestment Act (CRA) Proposal to October 20, 2004
The FDIC has extended the public comment period on its proposed changes to the Community Reinvestment Act from September 20, 2004, to October 20, 2004, in order to provide as many interested parties as possible with the opportunity to comment.
The Federal Deposit Insurance Corporation (FDIC) has extended the comment period on its proposed changes regarding the Community Reinvestment Act (CRA) from September 20, 2004, to October 20, 2004, in order to provide as many interested parties as possible with the opportunity to comment (see attached Federal Register notice).
Under the proposal, the CRA rules would be revised to increase the small bank threshold from $250 million to $1 billion. In addition, for banks with assets greater than $250 and up to $1 billion, the proposal would add a new community development criterion to the small bank performance standards that would provide these institutions with flexibility among community-based lending, investment and service activities. Finally, the proposal expands the definition of community development to encompass a broader range of activities in rural areas. For more information about the proposal, see FIL-96-2004, dated August 23, 2004.
The FDIC seeks comment on all aspects of the proposal, including whether a separate community development test, in addition to a lending test, would be more appropriate. Information on how to submit comments is provided in the attached Federal Register notice.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).