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FDIC Federal Register Citations




From: Warren Low [mailto:wlow@obabank.com]
Sent: Friday, September 17, 2004 2:46 PM
To: Comments
Subject: Streamlined CRA Exam; RIN number 3064-AC50

Warren Low
20300 Seneca Meadows Pkwy.
Germantown, MD 20876-7010

September 17, 2004

Comments to FDIC

Dear Comments to FDIC:

As a community banker, I join my fellow community bankers throughout the
nation in strong support of the FDIC's proposal to increase the asset size
limit of banks eligible for the streamlined small-bank CRA examination.

The proposal will greatly alleviate unnecessary paperwork and examination
burden without weakening our commitment to reinvest in our communities.
Reinvesting in our communities is something we do everyday as a matter of
good business. My community bank will not long survive if my local
community doesn't thrive, and that means my bank must be responsive to
community needs and promote and support community and economic
development.

Making it less burdensome to undergo a CRA exam by expanding eligibility
for the streamlined exam will not change the way my bank does business.
In fact, it will free up human and financial resources that can be
redirected to the community and used to make loans and provide other
services.

It is important to remember that the streamlined CRA exam is not an
exemption from CRA. It is a more cost effective and efficient CRA exam.
Banks subject to the simplified CRA exam are still fully obligated to
comply with CRA. Just as now, community banks would continue to be
examined to ensure they lend to all segments of their communities,
including low- and moderate-income individuals and neighborhoods. It just
doesn't make sense and is inequitable to evaluate a $500 million or $1
billion bank using the same exam procedures as for $100 billion or $500
billion bank.

For this reason, I find that the FDIC's proposed community development
requirement for banks between $250 million and $1 billion is more flexible
and more appropriate than the large bank investment test. The advantage
to this proposal is that it continues to focus on community development,
but considers investments, lending and services. It would let community
banks pursue community development activities that both meet the local
community's needs and make sense in light of the bank's strategic
strengths.

The FDIC's proposed changes to CRA are needed to help alleviate regulatory
burden. Without changes such as this, more and more community banks like
mine will find they cannot sustain independent existence because of the
crushing regulatory burden, and will opt to sell out. For many small
towns and rural communities, the loss of the local bank is a major blow to
the local community. By easing regulatory burden, it will make it easier
for community banks like mine to continue to provide committed service to
local communities that few other financial service providers are willing
to do.

Thank you for considering my views.

Sincerely,

Warren N. Low - OBA FSB

 

Last Updated 09/28/2004 regs@fdic.gov

Last Updated: August 4, 2024