[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]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Community Reinvestment Act; Rescission of Statement of Policy

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Rescission of statement of policy.

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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regulations, and thus is being rescinded.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DATES: The statement of policy is rescinded effective October 17, 1997.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