Printer Friendly

IBAA URGES FEDERAL HOME LOAN BANK SYSTEM TO EXPAND COMMUNITY BANK MEMBERSHIP

 WASHINGTON, March 25 /PRNewswire/ -- The Independent Bankers Association of America (IBAA) today urged the Federal Home Loan Bank System to ease its membership and advance restrictions, and to allow community bank representation on the System's board of directors.
 Testifying before the Federal Housing Finance Board, IBAA President James R. Lauffer said although more than 700 IBAA members already belong to the System, bank requirements equal to those for thrift members would boost the number. Also, System members should enjoy equal access to advances, he said, regardless of whether they are a bank or a thrift. Removal of the 30 percent cap on advances for banks would benefit both community banks and the System.
 "The IBAA supports the removal of restrictions on membership and advance criteria that are hampering the ability of community banks to use the System to the fullest extent," said Lauffer, chairman/president/CEO of First National Bank of Herminie, Irwin, Pa. "We believe that increased community bank participation is critical to the long-term viability of the System. To maximize the involvement of community banks, the System also needs to continue its outreach and education efforts."
 Lauffer also said community banks, the fastest growing membership component of the System, deserve representation on its board of directors. Community banks' views and concerns would be invaluable in helping FHLBanks fulfill the needs of members.
 In addition, the IBAA believes the System's $300 million fixed annual Resolution Funding Corporation payment should be changed to a percentage of net income, Lauffer said, with any shortfall being assessed against thrifts insured by the Savings Association Insurance Fund.
 In addition, Lauffer said IBAA:
 -- Encourages expansion of acceptable collateral to enable
 members to make broader use of advances.
 -- Opposes FHLBanks making direct loans for housing construction.
 -- Supports the AHP and CIP programs, and urges the System to
 continue educating members about Community Reinvestment
 Act-related products and services.
 -- Urges the System to continue educating bank regulators on the
 fact that FHLBank advances are a legitimate and cost-effective
 source of funding for community banks.
 IBAA is the only national trade association that exclusively represents the interests of the nation's community banks.
 -0- 3/25/93
 /CONTACT: Ann Grochala of the Independent Bankers Association of America, 202-659-8111/


CO: Independent Bankers Association of America ST: District of Columbia IN: FIN SU:

TW -- DC010 -- 9485 03/25/93 10:23 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 25, 1993
Words:391
Previous Article:SPRING BREAKERS SPEAK OUT: WHAT'S HOT AND WHAT'S NOT
Next Article:UNITED NEWSPAPERS REPORTS PRELIMINARY 1992 RESULTS: OPERATING PROFIT UP 14.4 PERCENT ON A 1.5-PERCENT GAIN IN REVENUES
Topics:


Related Articles
IBAA URGES CONGRESS TO SUPPORT INCREASED SBA FUNDING
TRADE GROUP SAYS 'NO' TO NEW FARM CREDIT POWERS
NEXT STEP IN MARCH TOWARD REGULATORY RELIEF BELONGS TO EXAMINERS, CONGRESS, SAYS IBAA
IBAA URGES CONGRESS TO MAINTAIN SBA LOAN GUARANTEE PROGRAM
IBAA NAMES LEGISLATIVE COUNSEL TO COVER SENATE
DECISIONS ON INTERSTATE BANKING AND BRANCHING BELONG TO STATES, IBAA TELLS CONGRESS
IBAA, ABA PROPOSAL WOULD ALLOW BANKS ACCESS TO FARM CREDIT SYSTEM TO STIMULATE RURAL DEVELOPMENT
IBAA, ABA PROPOSAL WOULD ALLOW BANKS ACCESS TO FARM CREDIT SYSTEM TO STIMULATE RURAL DEVELOPMENT
IBAA REITERATES SUPPORT FOR USING RTC MONEY TO RESOLVE FICO FUNDING PROBLEM
IBAA: COMMUNITY BANKS CHALLENGE CREDIT UNION SPONSORED BY THE FARM CREDIT SYSTEM

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters