ADOPTION OF AN INTERAGENCY RULE ON DISCLOSURE AND REPORTING OF CRA-RELATED AGREEMENTS.The federal bank regulatory agencies on December 21, 2000, approved the issuance of final regulations implementing the CRA See Community Reinvestment Act. Sunshine Requirements of the Federal Deposit Insurance Act (FDIA), which were recently enacted by the Gramm--Leach--Bliley Act. The FDIA establishes annual reporting and public disclosure requirements for certain written agreements that are entered into between insured depository institutions or their affiliates and nongovernmental entities or persons (NGEPs) and that are made pursuant to, or in connection with, the fulfillment of the Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. of 1977 (CRA). The final rule, to be published in the Federal Register by the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. , the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. , and the Office of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. , identifies the types of agreements that are in fulfillment of the CRA and implements the requirements of the statute. The FDIA exempts from coverage all agreements with NGEPs that have not had a communication concerning the CRA with the relevant banking organization or a banking agency. The final rule clarifies when NGEPs have had these types of communications and implements this exemption. The final rule also implements the exemptions included in the FDIA for certain types of loans and loan commitments. Consistent with the statute, the agencies have implemented the disclosure and reporting requirements of the act in a manner that limits potential burden. For example, the final rule establishes simple disclosure and reporting procedures and allows NGEPs to use reports that they have prepared for other purposes--such as tax returns and financial statements--if these reports provide the information required by the FDIA. The regulations, which are identical in all substantive respects, are effective April 1, 2001. |
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