[Weekly Compilation of Presidential Documents Volume 29, Number 28 (Monday, July 19, 1993)]
[Pages 1343-1344]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 financial services reform and any other nongermane 
amendments.
                                            William J. Clinton
The White House,
July 15, 1993

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