WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr.
issued the following statement following a vote by the Federal Deposit
Insurance Corporation’s Board of Directors on a proposed rule regarding the
Community Reinvestment Act:
The OCC recognizes the substantial paperwork and regulatory
burden on community banks from the Community Reinvestment Act regulations. The compliance costs associated with the CRA
can be a significant drain on resources for those community banks that do not
qualify for streamlined CRA examinations.
Comment letters we have received on the issue, as well as industry
studies on regulatory burden, argue in favor of this conclusion.
At the same time, the OCC also recognizes that simply making
substantial numbers of additional banks eligible for streamlined CRA
examinations, without due regard for the impact on community development
capital needs at the local level, could have a detrimental impact on the goals
of CRA. Comment letters we have
received on the issue also argue in favor of this conclusion.
It is possible to achieve meaningful reductions in
regulatory burdens on community banks arising from the CRA regulations and to
preserve meaningful CRA activities by these banks. If the right balance is found, both these objectives can be
achieved with changes to the CRA regulations and examination procedures.
The OCC remains committed to exploring means of relieving
the regulatory burdens on community banks while supporting community
reinvestment by these banks. We will
continue to work on an interagency basis with the FDIC and the Federal Reserve
Board to develop uniform standards for the banking industry consistent with
these goals.
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The OCC charters, regulates and examines approximately
2,000 national banks and 51 federal branches of foreign banks in the U.S.,
accounting for more than 56 percent of the nation’s banking assets. Its mission
is to ensure a safe and sound and competitive national banking system that
supports the citizens, communities and economy of the United States.