Expansion of the Community Reinvestment Act Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

three sections of ibbea address , expand community reinvestment act.

in section 107 ( equalizing competitive opportunities united states , foreign banks ):

(f) meeting community credit needs.

section 5(a) of international banking act of 1978 (12 u.s.c. 3103(a)) (as amended section 104 of act) amended inserting after paragraph (7) following new paragraph:

(8) continuing requirement meeting community credit needs after initial interstate entry acquisition.

(a) in general.—if foreign bank acquires bank or branch of bank, in state in foreign bank not maintain branch, , such acquired bank is, or part of, regulated financial institution (as defined in section 803 of community reinvestment act of 1977), community reinvestment act of 1977 shall continue apply each branch of foreign bank results acquisition if such branch regulated financial institution.

in section 109 ( prohibition against deposit production offices ):

(b) guidelines meeting credit needs. regulations issued under subsection (a) shall include guidelines ensure interstate branches operated out-of-state bank in host state reasonably helping meet credit needs of communities branches serve.
(c) limitation on out-of-state loans.

(1) limitation.—regulations issued under subsection (a) shall require that, beginning no earlier 1 year after establishment or acquisition of interstate branch or branches in host state out-of-state bank, if appropriate federal banking agency out-of-state bank determines bank’s level of lending in host state relative deposits host state (as reasonably determinable available information including agency’s sampling of bank’s loan files during examination or such data otherwise available) less half average of total loans in host state relative total deposits host state (as determinable relevant sources) banks home state of such state--

(a) appropriate federal banking agency out-of-state bank shall review loan portfolio of bank , determine whether bank reasonably helping meet credit needs of communities served bank in host state; and
(b) if agency determines out-of-state bank not reasonably helping meet needs

(i) agency may order interstate branch or branches of such bank in host state closed unless bank provides reasonable assurances satisfaction of appropriate federal banking agency bank has acceptable plan reason ably meet credit needs of communities served bank in host state, and
(ii) out-of-state bank may not open new interstate branch in host state unless bank provides reasonable assurances satisfaction of appropriate federal banking agency bank reasonably meet credit needs of community new branch serve.






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(2) considerations.—in making determination under paragraph (1)(a), appropriate federal banking agency shall consider—

(a) whether interstate branch or branches of out-of-state bank formerly part of failed or failing depository institution;
(b) whether interstate branch acquired under circumstances there low loan-to-deposit ratio because of nature of acquired institution’s business or loan portfolio;
(c) whether interstate branch or branches of out-of-state bank have higher concentration of commercial or credit card lending, trust services, or other specialized activities;
(d) ratings received out-of-state bank under community reinvestment act of 1977;




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section 110 ( community reinvestment act evaluation of banks interstate branches ) amends community reinvestment act include new section regarding method of evaluating compliance of banks branches in more 1 state.