    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
    [April 19, 2000]
    [Pages 749-750]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on the Community Reinvestment Act Report
    April 19, 2000

        Ensuring that all Americans have an opportunity to share in our
    Nation's economic prosperity has been at the core of my administration's
    domestic agenda. We have made progress, but there is much more that we
    can do to extend the benefits of the vibrant American economy, including
    our innovative financial markets, to all Americans.
        The Community Reinvestment Act (CRA) is central to that goal. Early
    in my administration,

    [[Page 750]]

    I asked the Federal banking regulators to revise the regulations
    implementing CRA to focus on the performance of banks and thrifts in
    serving the credit needs of their local communities. Since 1993, banks
    and thrifts have pledged to make over $1 trillion in home mortgage,
    small business, and community development loans for low and moderate
    income neighborhoods and borrowers. This report documents that since
    1993 banks and thrifts have already made well over $600 billion of such
    types of loans. Today, credit is more widely available than ever before
    for Americans who wish to borrow to buy a house or start a business. Our
    success in democratizing access to credit under this administration is
    an historic achievement, but we cannot rest.
        The financial modernization legislation that I signed into law last
    fall allows the integration of banking, insurance, and securities
    industries. In itself, this modernization should benefit consumers due
    to enhanced competition and innovative products and services. However,
    we also took a strong stand on protecting CRA, and we insisted on
    retaining CRA as a key pillar in the new banking system. We would not
    agree with those who attempted to weaken the CRA obligations of banks
    and thrifts in this process. Our determination resulted in the new
    requirement that a bank or thrift must have at least a satisfactory CRA
    rating each and every time it expands into these newly authorized lines
    of business. This is the first time CRA will be taken into consideration
    outside traditional bank merger and branch opening activities.
        We must remain watchful to ensure that, as we modernize our
    financial system, it works for all Americans. The Treasury Department's
    baseline report on CRA will serve as a useful guidepost in assessing how
    far we have come and what remains to be done. The report will also
    provide a benchmark against which to assess changes in access to credit
    and financial services as the industry continues to evolve in the years
    ahead.

    Note: The Treasury Department report was entitled ``The Community
    Reinvestment Act After Financial Modernization: A Baseline Report.''