Each depositor insured to at least $250,000 per insured bank

The Federal Deposit Insurance Corporation (FDIC) today issued a proposed rule seeking additional comments regarding the Community Reinvestment Act (CRA). On February 6, the FDIC, along with the other banking and thrift regulators, published for comment a proposed rule to make changes to CRA evaluations that would, among other things, increase the small institution threshold to $500 million from $250 million.

After reviewing the more than 900 comment letters received, the FDIC has decided to issue a new proposal to solicit additional comments on the impact of changing the definition of a small bank for purposes of CRA to include those with total assets of up to $1 billion, regardless of holding company affiliation.

In addition, for banks with assets between $250 million and $1 billion, the proposal would add a new community development criterion to the small bank performance standards that would provide these institutions with a choice among community-based lending, investment and service activities. The proposal also seeks comments on whether a separate community development test in addition to a lending test would be more appropriate The proposal also would expand the definition of community development to encompass a broader range of activities in rural areas.

The purpose of today's action is to solicit further comments for the FDIC's Board of Directors and staff to consider before making a final decision on rule changes. It does not withdraw or supersede the February 6 proposed rule.

Comments are due 30 days after publication in the Federal Register. Copies of the FDIC's proposal are attached and are also available at the Public Information Center (877-275-3342 or (703) 562-2200).