NR 99-25
FOR IMMEDIATE RELEASE                             Contact: Janis Smith
March 19, 1999                                    (202) 874-5770



Comptroller Says "Information and Education"  
Can Help Draw Unbanked into System

ARLINGTON, VA -- Comptroller of the Currency John D. Hawke Jr. said today that 
while great progress has been made in expanding access to credit, more needs to 
be done to bring the "unbanked" into the system.

"The expansion of consumer credit and the resurgence of community investment will 
clearly stand among the signal accomplishments of American finance in the 20th 
century -- accomplishments that attest to the power of the public, private, and 
nonprofit partnerships that made them possible," Mr. Hawke said in a speech to the 
National Community Reinvestment Coalition.

However, he said,  "We face new challenges -- new frontiers -- that must also be 
addressed. High on the list is the plight of the unbanked and underbanked."

According to the latest Survey of Consumer Finances, 13 percent of all American 
households, or 30 million adults, do not have a deposit account at a financial 
institution. 

"The neediest and most vulnerable segments of our population -- the people who 
potentially have the most to gain through participation in the banking system -- 
are currently outside the system," Mr. Hawke added.  "That's simply unacceptable."

The Comptroller emphasized that educating consumers about the benefits of becoming
participants in the financial system -- and the rising costs of not participating 
-- is vitally important in achieving our nation's economic and social goals.


"Information and education are critical to correcting weaknesses in access to 
traditional payments systems -- just as they were critical in our previous efforts 
in the consumer credit and community reinvestment arenas," he said.

 "Educating the currently unbanked about the advantages of dealing with financial
institutions -- and the responsibilities that come with it -- can help overcome the
prejudice and misconceptions that have been major barriers to their participation in 
the past," he said. 

     # # #

The OCC charters, regulates and examines approximately 2,600 national banks and 66 
federal branches and agencies of foreign banks in the United States, accounting for 
58 percent of the nation's banking assets.  Its mission is to ensure a safe, sound 
and competitive national banking system that supports the citizens, communities and 
economy of the United States.