nycirc_1978_08479.pdf
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FEDERAL RESERVE BANK OF NEW YORK ]* Circular No. 3479 1 L December 21, 1978 J PROPOSED AMENDMENT TO REGULATION BB Modification of Community Reinvestment Act Requirements for Institutions That Predominantly Serve Military Personnel To 37a?? Faw^j awJ Faw^ FfoMwgr Cow/'aMi'M, a?:J w DEtrfcL* The Board of Governors of the Federal Reserve System has proposed an amendment to its Regulation BB, "Community Reinvestment," that would allow a financial institution that predomi- nantly serves military personnel to define its "entire community" for purposes of the Community Reinvestment Act of 1977 to include depositors who do not reside in the institution's "local com- munity." The other Federal banking agencies also have proposed to amend their Community Rein- vestment Act regulations in the same manner. Printed below is the text of the proposed amendment. Comments should be submitted by January 8, 1979, and may be sent to our Consumer Affairs Division. PAUL A. VOLCKER, Proposed Amendment to Community Reinvestment Act Regulations ^fCEAC/EE; Board of Governors of the Federal Re- serve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Home Loan Bank Board. AC7YOAL Proposed regulations. EEAfAfAEF; This proposed amendment to the Agen- cies' regulations implementing the Community Reinvest- ment Act of 1977 would reflect an amendment to that law contained in the Financial Institutions Regulatory and Interest Rate Control Act of 1978 which relates to financial institutions whose business predominantly con- sists of serving the needs of military personnel who are not located within a defined geographic area. COHAfEATE MEET EE EECE/FED EF.- January 8, 1979. ADDEEEE.- Please send comments to : Theodore E. Allison, Secretary to the Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551. All material submitted should refer to FRB Docket No. R-0192. EOE EUETAEE /AE0EAE4770A COA7L4CT.- C. Baird Brown, Board of Governors of the Federal Re- serve System: 202-452-3265; JoAnn Barefoot, Comp- troller of the Currency: 202-447-0934; Jeffrey Tisdale, Federal Deposit Insurance Corporation: 202-389-4384; Nancy Feldman, Federal Home Loan Bank Board: 202-377-6643. EUPEEEAEEA7\4E /AEOEAE47VOA.- On October 12, 1978, the Board of Governors of the Federal Re- serve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Fed- eral Home Loan Bank Board (collectively referred to as "the Agencies"), adopted regulations to implement the Community Reinvestment Act of 1977 ("the CRA") (F.R. 47144). Those regulations became effective No- vember 6, 1978, as required by statute. The CRA requires that in connection with their ex- amination of institutions in their jurisdiction, the Agen- cies assess each institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution. The CRA further requires that the appropriate Agency take that record into account in its evaluation of any application by the institution for a charter, deposit insurance, branch or other deposit facility, office relocation, merger, or acquisition of bank or savings institution shares or assets. On November 10, 1978, the Financial Institutions Regulatory and Interest Rate Control Act of 1978 was enacted (Public Law 95-630), which contained the fol - lowing amendment to the C R A : "§ 803 . . . (4) A financial institution whose business predomi- nantly consists of serving the needs of military per- sonnel who are not located within a defined geographic (OVER) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Transcript of nycirc_1978_08479.pdf
FEDERAL RESERVE BANKOF NEW YORK
]* Circular No. 3 4 7 9 1 L December 21, 1978 J
PROPOSED AMENDMENT TO REGULATION BBModification of Community Reinvestment Act Requirements for Institutions That Predominantly Serve Military Personnel
To 37a?? Faw^j awJ Faw^ FfoMwgr Cow/'aMi'M,a?:J w DEtrfcL*
The Board of Governors of the Federal Reserve System has proposed an amendment to its Regulation BB, "Community Reinvestment," that would allow a financial institution that predominantly serves military personnel to define its "entire community" for purposes of the Community Reinvestment Act of 1977 to include depositors who do not reside in the institution's "local community." The other Federal banking agencies also have proposed to amend their Community Reinvestment Act regulations in the same manner.
Printed below is the text of the proposed amendment. Comments should be submitted by January 8, 1979, and may be sent to our Consumer Affairs Division.
PAUL A. VOLCKER,
Proposed Amendment to Community Reinvestment Act Regulations^fCEAC/EE; Board of Governors of the Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Home Loan Bank Board.AC7YOAL Proposed regulations.EEAfAfAEF; This proposed amendment to the Agencies' regulations implementing the Community Reinvestment Act of 1977 would reflect an amendment to that law contained in the Financial Institutions Regulatory and Interest Rate Control Act of 1978 which relates to financial institutions whose business predominantly consists of serving the needs of military personnel who are not located within a defined geographic area.COHAfEATE M EET EE E E C E /F E D EF.- January 8, 1979.ADDEEEE.- Please send comments to : Theodore E. Allison, Secretary to the Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W ., Washington, D.C. 20551. All material submitted should refer to FRB Docket No. R-0192.EOE E U E T A E E /A E 0 E A E 4 7 7 0 A COA7L4CT.-C. Baird Brown, Board of Governors of the Federal Reserve System : 202-452-3265; JoAnn Barefoot, Comptroller of the Currency: 202-447-0934; Jeffrey Tisdale, Federal Deposit Insurance Corporation: 202-389-4384; Nancy Feldman, Federal Home Loan Bank Board: 202-377-6643.
EUPEEEAEEA7\4E /AEOEAE47VOA.- On October 12, 1978, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board (collectively referred to as "the Agencies"), adopted regulations to implement the Community Reinvestment Act of 1977 ("the CRA") (F.R. 47144). Those regulations became effective N ovember 6, 1978, as required by statute.
The CRA requires that in connection with their examination of institutions in their jurisdiction, the Agencies assess each institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution. The CRA further requires that the appropriate Agency take that record into account in its evaluation of any application by the institution for a charter, deposit insurance, branch or other deposit facility, office relocation, merger, or acquisition of bank or savings institution shares or assets.
On November 10, 1978, the Financial Institutions Regulatory and Interest Rate Control Act of 1978 was enacted (Public Law 95-630), which contained the following amendment to the C R A :
"§ 803 . . .(4) A financial institution whose business predominantly consists of serving the needs of military personnel who are not located within a defined geographic
(OVER)Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
area may define its 'entire community' to include its entire deposit customer base without regard to geographic proximity."The proposed regulatory amendment would allow
qualified institutions to delineate a "military community" of nonlocal depositors in addition to a local community or communities; these would comprise their "entire community" under the regulation.The Agencies propose this implementation of the statutory provision because preliminary information indicates that institutions potentially qualified under it have a local customer base as well as nonlocal military customers. However, the amendment is issued in proposed form to allow comment on the scope of the statutory provision. Commenters are asked to consider particularly the proposed percentage and mileage limitations, and whether a military community should be the only community required to be delineated where local depositors constitute an insignificant portion of the institution's entire deposit customer base.Institutions are requested to comply with the proposed regulation during the comment period.Accordingly, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board propose to amend 12 CFR Parts 25, 228, 345, and 563e, to read as set forth below:
§ 228.3 . . .( c ) (1 ) Notwithstanding the requirements of paragraphs (a) and (b) of this section, a State member bank, over half of whose depositors are active duty or retired military personnel or their dependents who reside more than 50 miles from any of its offices, may delineate a "military community" for those depositors, in addition to its local community or communities. A military community shall be delineated by a written description rather than a map.
(2 ) References to "local communities" in the provisions of this Part shall apply to military communities.
* * *Authority: Community Reinvestment Act of 1977 (title V III, Pub. L. 95-128, 91 Stat. 1147 (12 U.S.C. 2901 et seq.)) ; Pub. L. 95-630; 12 U.S.C. 321, 325, 1814, 1816, 1828, 1842.
By order of the Board of Governors, effective November 29, 1978.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
