[Federal Register Volume 62, Number 201 (Friday, October 17, 1997)]
[Notices]
[Pages 54112-54113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27518]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
Community Reinvestment Act; Rescission of Statement of Policy
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Rescission of statement of policy.
-----------------------------------------------------------------------
SUMMARY: As part of the FDIC's systematic review of its regulations and
written policies under section 303(a) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (CDRIA), the FDIC is
rescinding its Statement of Policy on the ``Community Reinvestment
Act.'' The statement of policy has been rendered obsolete by the
amendment of part 345 (Community Reinvestment) of the FDIC's
regulations, and thus is being rescinded. This action furthers the
goals of section 303(a) of CDRIA by removing inconsistencies and
outmoded and duplicative requirements from the FDIC's supervisory
policies.
DATES: The statement of policy is rescinded effective October 17, 1997.
FOR FURTHER INFORMATION CONTACT: Louise N. Kotoshirodo, Review
Examiner, Division of Compliance and Consumer Affairs (202-942-3599),
or Ann Hume Loikow, Counsel, Legal Division (202-898-3796), FDIC, 550
17th Street, N.W., Washington, D.C. 20429.
SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review
of its regulations and policy statements pursuant to section 303(a) of
the Riegle Community Development and Regulatory Improvement Act of 1994
(CDRIA) (12 U.S.C. 4803(a)), which requires the FDIC, the Office of the
Comptroller of the Currency, the Office of Thrift Supervision, and the
Board of Governors of the Federal Reserve System (agencies) to
streamline and modify their regulations and written policies in order
to improve efficiency, reduce unnecessary costs, and eliminate
unwarranted constraints on credit availability. Section 303(a) also
requires the agencies to remove inconsistencies and outmoded and
duplicative requirements.
The FDIC adopted jointly with the agencies a new part 345 to the
FDIC's rules and regulations, entitled ``Community Reinvestment,'' to
implement the Community Reinvestment Act of 1977 (CRA), which was
published in the Federal Register on October 12, 1978 (43 FR 47144). On
March 31, 1980, the FDIC Board of Directors adopted a Statement of
Policy on the Community Reinvestment Act (Statement of Policy) which
discussed the act and regulations, how FDIC examiners would assess a
bank's record of meeting community credit needs, and how the FDIC would
take such assessment into account when evaluating various types of
applications for deposit facilities.
On May 4, 1995, the FDIC published jointly with the agencies,
significant amendments to part 345 of the FDIC's rules and regulations
(60 FR 22156). Subsequent technical amendments were made to part 345
and published in the Federal Register on December 20, 1995 (60 FR
66048) and May 10, 1996 (61 FR 21362), respectively. Part 345 of the
FDIC's rules and regulations, as amended, reduces unnecessary
regulatory burden and replaces the 12 assessment factors contained in
the 1979 rule and Statement of Policy with a more performance-based
evaluation process to assess a bank's record in meeting the credit
needs of its community, including low- and moderate-income
neighborhoods. The new regulation was phased in over a two-year period
beginning July 1, 1995. On July 1, 1997, all remaining portions of the
rule became effective and all insured state nonmember banks are now
evaluated under the new CRA performance tests.
As part of the Corporation's regulatory review project required by
section 303(a) of CDRIA, the Board has reviewed the Statement of Policy
and determined that the supervisory guidance contained in it has been
rendered obsolete by the amendment of part 345 and should be rescinded.
Furthermore, the Board concludes that rescission of this Statement of
Policy
[[Page 54113]]
would further the goal of section 303(a) of CDRIA of removing
inconsistencies and outmoded and duplicative requirements.
Rescission of this Statement of Policy does not reflect any
substantive change in the FDIC's supervisory attitude toward insured
state nonmember banks' compliance with the Community Reinvestment Act
and part 345.
For the foregoing reasons, the Statement of Policy is hereby
rescinded.
By order of the Board of Directors.
Dated at Washington, D.C. this 6th day of October, 1997.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 97-27518 Filed 10-16-97; 8:45 am]
BILLING CODE 6714-01-P
