ADVANCE NOTICE OF PROPOSED RULEMAKING REGARDING THE COMMUNITY REINVESTMENT ACT.Federal bank and thrift regulatory agencies announced on July 19, 2001, the approval of a joint interagency advance notice of proposed rulemaking A notice of proposed rulemaking or NPRM is issued by law when a regulatory agency of the United States Federal Government wishes to add, remove, or change a rule (or regulation) as part of the rulemaking process. Outside the USA. (ANPR) regarding 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. (CRA). The CRA directs the agencies to assess a financial institution's record of meeting the credit needs of its entire community and to consider that record when acting on certain applications for deposit facilities. When the agencies revised the CRA regulations in 1995, they committed to review the regulations in 2002 to determine whether the revised regulations had met the goals of more objective, performance-based CRA evaluations. The ANPR, 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 Office of the Comptroller of the Currency, 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. , and 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. initiates this review of the CRA regulations. Through the ANPR, the agencies invite comment on a number of key issues raised since 1995 by representatives of financial institutions, consumer and community groups, members of Congress, and the public. The agencies also request comment on other issues related to the CRA regulations, including whether any change to the regulations would be beneficial or is warranted, and what steps the agencies might take instead of, or in addition to, revising the regulations. Comments from the public must be received by October 17, 2001. |
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