The Office of the
Comptroller of the Currency (OCC) today released a Community Developments
Insights report, “Commercial Lending in Indian Country: Potential
Opportunities in an Untapped Market,” which highlights best practices for banks
making commercial loans on tribal trust lands as well as to tribes and tribal
enterprises.
“We see the growing
demand for credit and capital on Native American land, coupled with recent
revisions to the Community Reinvestment Act (CRA), generating increased
interest in financing for tribal economic activities,” Comptroller of the
Currency John C. Dugan said. “We are
pleased to offer this resource to banks seeking creative financing techniques
and partnership models to assist in the economic development of Indian
Country.”
This Insights report
discusses specific approaches implemented by bankers involved in this market to
accommodate some of the unique business and legal challenges to commercial
lending in Indian Country. The report describes how banks can use Federal loan
guarantee programs available to help mitigate risk in this market. Additionally, the report presents an overview
of regulatory changes that allow positive CRA consideration for community
development-related financing activities in underserved or distressed
non-metropolitan middle-income areas. Native American communities in sparsely
populated rural areas which may have had difficulty obtaining financing for
community development projects may now see a broader range of activities
eligible for CRA consideration.
This Insights report can be found on the OCC web site at http://www.occ.gov/cdd/CommLending.pdf.
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.