WASHINGTON,
D.C. -- U.S. Representative Jan Schakowsky (D-IL) today announced that
the Federal Reserve Board agreed to pursue her concerns to assist small
businesses gain greater access to credit and capital.
The
new proposal expected to be issued by the Federal Reserve Board would allow
banks involved in consolidation to voluntarily collect and report information
on small business loan applications and approvals. Data could be
collected on the amount of each loan, and the race, income, gender and
census tract of each applicant. Current regulation prohibits the
collection of this information.
At
this time, banks collect the same data on consumers applying for mortgage
loans. This has led to a substantial increase in mortgage loans to
under-served communities.
During
Banking Committee hearings on HR 10, the Financial Services Act, Schakowsky
had expressed concerns about the impact of financial modernization on small
businesses.
Schakowsky
said, "During his testimony before the House Banking Committee last month,
Federal Reserve Chairman Alan Greenspan acknowledged the need to monitor
the impact of consolidation on small business lending. I am pleased
that the Federal Reserve Board has taken this important first step that
will help us accomplish this goal and will be working to further expand
this proposal to include required reporting by all banks."
Schakowsky
is attempting to offer an amendment to HR 10, the Financial Services Act,
to require the Department of Treasury to study the effect of this bill
on small business and farm lending and suggest legislative and regulatory
changes as necessary to aid small business and farm lending. The
amendment must be made in order by the House Rules Committee.
HR
10 is schedule to be on the House floor later this week.
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