A look inside...
Welcome to the first on-line Investments edition of Community Developments. National banks are continuing to recognize CD investing as a way to remain financially and socially responsible to their customers and communities, and the OCC strongly supports these efforts. Banks find these investments add to their bottom lines, expand their market reach, support the development of new products, and leverage matching funds from partnering sources. All in all, CD investing is an exciting opportunity.
This electronic magazine focuses on examples of national bank investments in community development activities. In particular, we will illustrate the investment opportunities available under OCC's national bank public welfare investment authority ( 12 CFR 24 or "Part 24"). Each quarter we will bring you stories of diverse investments that help communities stabilize, revitalize, or grow. The articles will describe the investments and their value to the banks, and how each investment helped the community or neighborhood. In addition, each quarterly E-zine will contain resources that can help you:
In addition, we will provide you with a listing of Part 24 investments approved during the previous quarter of 2004 as well as access to precedent-setting opinion letters.
This edition also examines bank investments that have been made in conjunction with the New Markets Tax Credit (NMTC), a program designed to help spur growth in distressed communities. Last fall, the OCC revised Part 24 to explicitly identify NMTCs as an eligible investment. In addition, the OCC issued an Interpretive Letter clarifying that NMTCs are an eligible CRA investment. In the past few months, the CDFI Fund has signed agreements with awardees of the first $2.5 billion of the $15 billion total to be made available over the next four years. In addition, the fund as allocated $3.5 billion of the second round of NMTCs. This edition describes transactions by two awardees: Key Bank Community Development Corporation and Oklahoma Metafund.
We hope this E-zine contains information about CD investing that can help your bank expand or target its investing efforts. I would like to hear your thoughts about this edition and any community development investment topics we might cover in future editions.
Acting Deputy Comptroller