Community Banker Alert

As you may be aware, the banking regulators have released proposed guidance that would require banks with concentrations in commercial real estate lending (CRE) to tighten risk management practices and potentially increase capital.

Both ICBA and ACB are preparing comment letters to the regulators on behalf of community banking.

ACB has asked the four regulators to extend the March 14, 2006 due date for comments on the Proposed Guidance by 30 days. This is an extremely complex and far-reaching Guidance document and we urge members that have a concentration in commercial real estate lending to have your compliance experts review the Proposed Guidance.

ICBA has requested comments from members and you may access their request for comments including a very comprehensive background and summary of the proposal.

I know ACB would also appreciate receiving comments from members on this issue. The contact for ACB is Patricia A. Milon, Senior Vice President, Regulatory Affairs. The link for ACB’s extension request is: http://www.acbankers.org/government/scripts/government_view_comment.asp?ID=1218.

If you have any questions or need further information, please do not hesitate to contact Dave Transue, PACB’s Government Affairs Consultant.

Thanks so much.