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IBAA VOICES OPPOSITION TO INTERSTATE BRANCHING BILL; LEGISLATION LACKS KEY COMMUNITY BANK PROVISIONS

 IBAA VOICES OPPOSITION TO INTERSTATE BRANCHING BILL;
 LEGISLATION LACKS KEY COMMUNITY BANK PROVISIONS
 WASHINGTON, June 30 /PRNewswire/ -- The Independent Bankers Association of America (IBAA) today voiced community banks' strong opposition to H.R. 4170, the Interstate Banking Efficiency Act of 1992.
 IBAA President Bob Hawkins, testifying before the House Banking Committee's Financial Institutions Subcommittee, noted that the bill contains none of the community bank compromises discussed during meetings held separately with the Treasury Department, with representation of regional banks and insurance agents.
 "Let me say at the outset that the Treasury Department has played a most constructive role, and we very much appreciate their willingness to understand and discuss community bankers' concerns," said Hawkins, chairman of Southern Commercial Bank in St. Louis.
 During meetings with the Treasury, IBAA was willing to consider an interstate branching bill that would prohibit out-of-state banks from entering small cities (under 50,000 in population) except by acquisition. "A federal provision like this would prevent large, out-of-state banks from moving in and siphoning deposits away from local lending," Hawkins testified. "Without such protection, economic development, particularly that fueled by small business and agricultural operations, would suffer."
 Also during the meetings, IBAA raised several additional concerns regarding the interstate branching proposal under discussion earlier.
 -- Savings and loans must be required to adhere to the same interstate branching rules that are provided for commercial banks.
 -- Meaningful relief from the regulatory burden must be part of any legislative initiative.
 -- Restrictions on annuity sales for national banks, part of an agreement between regional bank and insurance agents, must be eliminated.
 The community bank provisions were highlighted in a Treasury Department summary of initiatives recommended by trade associations and others during the meetings hosted by the agency. Hawkins submitted the document, which reviews the major issues under consideration, to Congress as part of his testimony. He noted that the document was not a Treasury proposal and that the Treasury was acting as an "honest broker" between the interested parties.
 IBAA is the only national trade association that exclusively represents the interests of the nation's community banks.
 -0- 6/30/92
 /NOTE: Attached to Hawkins' testimony is a discussion document put together by the U.S. Treasury in its role as an "honest broker."/
 /CONTACT: Steve Verdier of the Independent Bankers Association of America, 202-659-8111/ CO: Independent Bankers Association of America ST: District of Columbia IN: FIN SU: LEG


DC -- DC005 -- 5158 06/30/92 11:58 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
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