The Federal Deposit Insurance Corporation announced
today its first approval under new rules that give institutions the
option to be evaluated for compliance with the Community
Reinvestment Act (CRA) using a self-designed "strategic plan."
Under the revised CRA rules, institutions can choose to be
evaluated for CRA performance under set criteria from the
regulatory agencies or they can develop their own strategic plan
with community input and the approval of their primary federal
regulator. An institution using the strategic plan option has the
opportunity to tailor its CRA objectives to the needs of its
community and to its own capacities, business strategies and
In this case, the FDIC approved the strategic plan submitted
by the $149-million asset Swiss Avenue State Bank of Dallas,
Texas. The bank proposed to focus its CRA efforts on small
business lending which, according to the bank's management, is the
institution's area of expertise. The bank's plan also includes
measurable goals for residential and consumer lending, investments
Carmen J. Sullivan, Director of the FDIC's Division of
Compliance and Consumer Affairs, said: "We found Swiss Avenue
State Bank's CRA plan a reasonable approach for meeting both its
business needs and the credit needs of its community. However, it
is a plan specific for this bank. Any other bank considering the
strategic plan option must look at its own circumstances and how it
can best help meet the credit needs of its own community."
This approval also is the first given by a regulatory agency
for a CRA strategic plan submitted by a relatively small institution.
On December 19, 1996, in the only other approval of a strategic
plan to date, the Federal Reserve Bank of Chicago approved a
strategic plan for The Northern Trust Company, Chicago, Illinois,
which has approximately $18 billion in assets.
The FDIC now has pending 10 proposed strategic plans
from other institutions.
Swiss Avenue State Bank's strategic plan and the FDIC's
December 23rd approval letter are available upon request from the
FDIC's Public Information Center at 801 17th Street, NW, Room
100, Washington, DC 20434, or by calling 800-276-6003 or (703) 562-2200.
Congress created the Federal Deposit Insurance Corporation in 1933 to
restore public confidence in the nation's banking system. The FDIC
insures deposits at the nation's 11,547 banks and savings associations
and it promotes the safety and soundness of these institutions by
identifying, monitoring and addressing risks to which they are exposed.
FDIC press releases and other documents are available on the Internet
via the World Wide Web at www.fdic.gov. They may also be obtained
through the FDIC's Public Information Center, 801 17th Street, NW,
Room 100, Washington, DC 20434 (telephone 800-276-6003 or (703) 562-2200).