ICBA Studying FHLB Membership Question

Apr 03, 2001, 01:00 ET from Independent Community Bankers of America

    WASHINGTON, April 3 /PRNewswire/ -- The Independent Community Bankers of
 America announced today that it has established a special task force to study
 whether FHLBank members should be permitted to belong to more than one FHLBank
 using a single charter and other important issues affecting the FHLBanks.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000103/DCM001 )
     The ad hoc task force's first project is to study the implications for the
 FHLBanks and their community bank members should Washington Mutual Bank, F.A.,
 FleetBoston Financial Corp. and other large members be allowed to join more
 than one FHLBank under one charter.
     "As consolidation continues in the financial services industry, more and
 more FHLBank members are likely to seek such authority and we want to take a
 thorough look at the implications for all parties involved," said ICBA
 Chairman Bob Gulledge, who established the task force and serves as a member.
 He is chairman, president and CEO of Citizens' Bank Inc. in Robertsdale, Ala.
     Gulledge announced that ICBA Vice Chairman C.R. (Rusty) Cloutier,
 president of MidSouth National Bank in Lafayette, La., was named to serve as
 the task force's chairman.
     The FHLBank membership issue has potentially profound ramifications for
 the FHLBank System, on which community banks are increasingly dependent as
 they seek FHLBank advances to supplement deposits to fund their operations,
 Gulledge said. "There is no easy answer to the question of whether a financial
 institution can belong to more than one FHLBank using a single charter," he
 added. "There are FHLBanks and their members that stand to win under such an
 arrangement and those that stand to lose."
 
     ICBA is the primary voice for the nation's community banks, representing
 5,300 institutions at nearly 17,000 locations nationwide.  Community banks are
 independently owned and operated and are characterized by attention to
 customer service, lower fees and small business, agricultural and consumer
 lending.  ICBA's members hold more than $486 billion in insured deposits, $592
 billion in assets and more than $355 billion in loans for consumers, small
 businesses and farms. They employ nearly 239,000 citizens in the communities
 they serve. For more information, visit http://www.icba.org .
 
 

SOURCE Independent Community Bankers of America
    WASHINGTON, April 3 /PRNewswire/ -- The Independent Community Bankers of
 America announced today that it has established a special task force to study
 whether FHLBank members should be permitted to belong to more than one FHLBank
 using a single charter and other important issues affecting the FHLBanks.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000103/DCM001 )
     The ad hoc task force's first project is to study the implications for the
 FHLBanks and their community bank members should Washington Mutual Bank, F.A.,
 FleetBoston Financial Corp. and other large members be allowed to join more
 than one FHLBank under one charter.
     "As consolidation continues in the financial services industry, more and
 more FHLBank members are likely to seek such authority and we want to take a
 thorough look at the implications for all parties involved," said ICBA
 Chairman Bob Gulledge, who established the task force and serves as a member.
 He is chairman, president and CEO of Citizens' Bank Inc. in Robertsdale, Ala.
     Gulledge announced that ICBA Vice Chairman C.R. (Rusty) Cloutier,
 president of MidSouth National Bank in Lafayette, La., was named to serve as
 the task force's chairman.
     The FHLBank membership issue has potentially profound ramifications for
 the FHLBank System, on which community banks are increasingly dependent as
 they seek FHLBank advances to supplement deposits to fund their operations,
 Gulledge said. "There is no easy answer to the question of whether a financial
 institution can belong to more than one FHLBank using a single charter," he
 added. "There are FHLBanks and their members that stand to win under such an
 arrangement and those that stand to lose."
 
     ICBA is the primary voice for the nation's community banks, representing
 5,300 institutions at nearly 17,000 locations nationwide.  Community banks are
 independently owned and operated and are characterized by attention to
 customer service, lower fees and small business, agricultural and consumer
 lending.  ICBA's members hold more than $486 billion in insured deposits, $592
 billion in assets and more than $355 billion in loans for consumers, small
 businesses and farms. They employ nearly 239,000 citizens in the communities
 they serve. For more information, visit http://www.icba.org .
 
 SOURCE  Independent Community Bankers of America