Communities First Act Introduced

Communities First Act Introduced

ICBA publicly expressed its support for legislation designed to help community banks invest in their local communities to help support small businesses, jobs and the economy. The Communities First Act (H.R. 1697), which was introduced by House Financial Services Committee member Blaine Luetkemeyer (R-Mo.), would:

  • allow community banks to amortize losses on commercial real estate loans and other real estate owned over a period of 10 years for regulatory capital purposes,
  • require the Securities and Exchange Commission to conduct a cost-benefit analysis before approving any proposed accounting change,
  • increase the threshold number of bank shareholders that trigger SEC registration from 500 to 2,000,
  • allow the Financial Stability Oversight Council to veto Consumer Financial Protection Bureau rules that would adversely affect a subset of the financial services industry,
  • amend the Wall Street Reform Act to restore bank reliance on external credit ratings,
  • extend the five-year net-operating-loss carryback provision, and
  • create a limited tax credit for community banks to improve credit.

“By advancing much-needed policies that allow our local communities to flourish, Rep. Luetkemeyer’s timely legislation will bolster our recovery,” ICBA Chairman Sal Marranca said.