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BANKERS ROUNDTABLE COMMENDS TASK FORCE EFFORTS ON CRA

 WASHINGTON, Dec. 8 /PRNewswire/ -- The Bankers Roundtable today commended the efforts of an interagency task force in developing more objective standards for compliance with the Community Reinvestment Act (CRA), eliminating requirements for unnecessary documentation under that act and improving the consistency of CRA examinations and enforcement for banks. "The proposal represents a positive and promising step toward improving the effectiveness and efficiency of the Community Reinvestment Act," said Leo F. Mullin, president of First Chicago Corporation and chair of the Roundtable's consumer banking committee.
 Mullin noted that the proposal outlined a set of tests for evaluating CRA compliance. Mullin stated that "these tests have the effect of shifting CRA focus to achievements and away from documentation of process." The tests call for banks to be evaluated on the basis of their lending to, servicing of and investment in local communities. This is seen as allowing banks to demonstrate the full extent of their commitment to local communities.
 "Particularly encouraging," said Mullin, "is the new option that would allow a bank to develop its own CRA plan and be evaluated in terms of that plan rather than in terms of arbitrary requirements that do not necessarily fit the needs of its local community." This option, which calls for a bank's plans to be made publicly available and to have measurable goals, is consistent with an approach endorsed this past October by the Roundtable as a way to improve the effectiveness of the Community Reinvestment Act.
 "The approach taken by the interagency task force shows a willingness on the part of the administration to respond effectively but flexibly to the requirements of the Community Reinvestment Act," said Mullin. "The Bankers Roundtable is interested in working closely and intensively with both the administration and the bank regulatory agencies in seeing that the objectives of this new initiative are achieved in a workable manner."
 The Bankers Roundtable represents the nation's major banking companies. Membership in the Roundtable is reserved for the largest 125 U.S. banking companies. The highest-ranking executives of those companies serve as representatives to the Roundtable. Parties interested in further information should contact Anthony T. Cluff, executive director of The Bankers Roundtable at 202-289-4322.
 -0- 12/8/93
 /CONTACT: Anthony T. Cluff of The Bankers Roundtable, 202-289-4322/


CO: The Bankers Roundtable ST: District of Columbia IN: FIN SU: LEG

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Date:Dec 8, 1993
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