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NEW INTERBANK LIABILITY RULE IMPOSES MINIMAL BURDEN, IBAA SAYS

 WASHINGTON, Nov. 20 ~PRNewswire~ -- The Independent Bankers Association of America issued the following:
 The Independent Bankers Association of America (IBAA) commends the Federal Reserve Board for adopting a reasonable and flexible interbank liability rule. The new Regulation F will require banks to have policies in place to monitor their interbank exposures as required by the FDIC Improvement Act.
 Thanks to the board's efforts, the regulatory burden imposed by this congressionally mandated rule will be minimal. The focus of the new rule's limitations is on the less-than-adequately capitalized banks. In addition, the board provided guidance for how banks should assess the creditworthiness of their correspondents.
 The board substantially revised its original proposal addressing many of the concerns of community banks. In this climate of regulatory burden, it is gratifying that the board heeded many of the recommendations of community bankers. The new rule balances the interests of safety and soundness and the need to resist imposing unnecessary regulatory burden.
 For the bankers' banks, the framework provided in the new Regulation F will not impair correspondent relationships. Consequently, the bankers' banks join the IBAA commending the board for their diligence.
 The next step will be the implementation of the rule. During the two-year phase in, it is critical that bank examiners receive appropriate training to ensure reasonable application. Bank examiners must not be permitted to undo the board's flexible and reasonable approach to control interbank liability.
 The IBAA is the only national trade association which exclusively represents the interests of the nation's community banks.
 -0- 11~20~92
 ~CONTACT: Viveca Ware, associate director, bank operations, Independent Bankers Association of America, 202-659-8111; or Gayle Earls, chairman, Bankers' Bank Council, 214-869-4600~


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

TW -- DC012 -- 3475 11~20~92 15:15 EST
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Publication:PR Newswire
Date:Nov 20, 1992
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