WASHINGTON – Comptroller of the Currency John C.
Dugan today urged Congress to adopt legislation that would increase the
authority of banks and thrifts to invest in projects that provide housing,
community services, and jobs for low- and moderate-income communities and
families across the nation.
In a letter tto the chairmen and ranking members of the Senate Banking Committee and House Financial Services Committee, Mr. Dugan said a provision in the House legislation, modified to extend to all banks and thrifts, should be adopted.
The House language would raise the limit on such
public welfare investments by federally chartered banks and thrifts to 15
percent of capital and surplus, up from 10 percent. Mr. Dugan urged the two committees to expand the authority to
include all insured banks and savings associations.
“These investments support critically needed
urban revitalization, rural development and job creation,” Mr. Dugan said in
his letter. “They do so in a manner
that is not only beneficial to the communities served, but enjoys a solid track
record of profitability and safety and soundness.”
National banks have made more than $16 billion
in public welfare investments since the law was passed in 1992, and some banks
are approaching the 10 percent limit.
The enhanced authority supported by the OCC would make it possible for
national banks alone to invest as much as $30 billion to revitalize communities
across the nation.
Identical letters went
to the chairmen and ranking members of the Senate Banking Committee and House
Financial Services Committee. A copy of
one of the letters is available on the OCC’s web site at: www.occ.treas.gov/ftp/release/2006-67a.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.