    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [July 15, 1993]
    [Pages 1087-1088]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting Community Development Banking and
    Finance Legislation
    July 15, 1993

    To the Congress of the United States:
        I am pleased to submit to the Congress the ``Community Development
    Banking and Financial Institutions Act of 1993''. This legislative
    initiative will promote the creation of community development financial
    institutions that will empower individuals and communities and provide
    for greater economic opportunity. Also transmitted are a statement of
    the Administration's principles embodied in this proposal and a section-
    by-section analysis.
        In too many urban and rural communities, there is a lack of capital
    and credit. Lending in distressed communities, particularly to small
    businesses, can be complicated. It may require special expertise and
    knowledge of the borrower and the community, credit products, subsidies,
    and secondary markets. Community development financial institutions--
    including community development banks like South Shore Bank in Chicago,
    community credit unions such as Self-Help in North Carolina, community
    development corporations, micro-enterprise loan funds, and revolving
    loan funds--have demonstrated that they can provide capital, credit, and
    development services in distressed areas and to targeted populations.
        The bill proposes establishment of a Community Development Banking
    and Financial Institutions Fund that would support a program of
    investment in community development financial institutions. The Fund
    would provide financial and technical assistance to, and serve as a
    national information clearinghouse for, community development financial
    institutions.
        This initiative reaffirms my commitment to helping communities help
    themselves. By ensuring greater access to capital and credit, we will
    tap the entrepreneurial energy of America's poorest communities and
    enable individuals and communities to become self-sufficient.
        My Administration is also committed to enhancing the role of
    traditional financial institutions with respect to community
    reinvestment. As a complement to the community development financial
    institutions initiative, we will adopt regulatory changes to more
    effectively implement the Community Reinvestment Act of 1977. These
    changes will replace paperwork with performance-oriented standards and
    will include tougher enforcement measures for noncompliance.
        In order to secure early enactment of legislation in this crucial
    area, I urge the Congress to consider the Community Development Banking
    and Financial Institutions Act of 1993 as a discrete bill, separate from
    general issues of

    [[Page 1088]]

    financial services reform and any other nongermane amendments.

                                                          William J. Clinton

    The White House,
    July 15, 1993