[Weekly Compilation of Presidential Documents Volume 31, Number 16 (Monday, April 24, 1995)]
[Pages 662-663]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Reform of Regulations Implementing the Community 
Reinvestment Act

April 19, 1995

    Today, I am pleased to announce completion of a commitment I made to 
reform the regulations implementing the Community Reinvestment Act. 
These reforms help fulfill two important promises I made to the American 
people: to increase access to credit for all Americans, and to decrease 
Federal regulatory burdens.
    Combined with my administration's community development banks and 
financial institutions initiative, the Empowerment Zone/Enterprise 
Community program, an expanded earned-income tax credit, and our 
continuing effort to strengthen the economy, the reformed Community 
Reinvestment Act regulations will give many more Americans a chance to 
realize the American dream by greatly expanding individual opportunity--
empowering every American to improve their own lives.
    At a time when funding from all levels of government is scarcer and 
scarcer, the ability of our communities to help themselves takes on 
special importance. That's what the Community Reinvestment Act is all 
about.
    With the new regulations in place, the statute will increasingly 
have a positive impact on the lives of countless Americans who work

[[Page 663]]

and play by the rules. Many more financial institutions will discover 
new, profitable lines of business. And it doesn't cost taxpayers a dime. 
It can create miracles in small towns and big cities from coast to 
coast, miracles like mortgage or business loans for people who never 
thought they could own a house or business, multifamily housing loans, 
and commercial development loans in low to moderate income communities.
    To maximize the benefits that can accrue to both banks and 
consumers, the final regulation issued today by the Office of the 
Comptroller of the Currency, the Office of Thrift Supervision, the Board 
of Governors of the Federal Reserve, and the Federal Deposit Insurance 
Corporation will place emphasis on performance, not paperwork. The new 
regulations will make the act easier for banks to implement and will 
result in more consistent evaluation of their performance. With these 
improved regulations in place, the statute can reach its full potential 
to help our communities help themselves. Now is the time to end 
uncertainty and get on with business, not to tinker with the statute.
    Producing this final regulation has taken a lot of effort on the 
part of the regulators and has involved excellent input from financial 
institutions and community groups throughout the country. I want to 
congratulate and thank everybody who participated in this process.