| | FOR IMMEDIATE RELEASE |
Contact: Robert M. Garsson | July 16, 2004 | (202) 874-5770 |
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WASHINGTON -- The Office of the Comptroller of the Currency
(OCC) announced today its intention to withdraw proposed amendments to its
Community Reinvestment Act (CRA) regulations.
The OCC, together with the other federal banking regulators, proposed in
February to raise the asset threshold for banks that are treated as small
banks from $250 million to $500 million and to specify types of abusive
lending practices that would adversely affect a banks CRA evaluation. The OCC has been carefully reviewing these
and other CRA-related issues since the agencies initiated a formal review of
the CRA regulations in late 2001.
The OCC is very sensitive to the impact and potential burden
on small banks from the CRA and other regulations, and recognizes the strong
interest among community banks in raising the small bank asset threshold to
address their concerns about regulatory burden. The OCC also recognizes and is very sensitive to the fact that
many community organizations and others believe strongly that an increase in
the small bank asset threshold would have a very significant, and detrimental,
impact on CRA activities nationwide, including in rural communities. Resolution of these deeply divided views
involves a balancing of political and economic considerations that can best be
addressed in a legislative forum.
After giving all of the comments very careful consideration,
the OCC has decided to withdraw its regulatory proposal and to submit a report
to Congress that summarizes the comments received and provides an analysis of
the issues considered in connection with its review of the CRA
regulations.
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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 nations 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.
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