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C ircu lar No. 79-172
October 22, 1979


The five constituent Federal financial regulatory agencies of the
Federal Financial Institutions Examination Council have approved a joint
statement of policy on discrim ination effective October 11, 1979.
The press release concerning this statement, along with the text
of the policy statement, is printed on the following pages.

For fu rth e r in­

formation contact M r. Samuel H. T a lle y , Board of Governors of the Federal
Reserve System, (202) 452-3354.
Sincerely yours,
Robert H . Boykin
F irst Vice President

Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

Federal Financial Institutions Examination Council, Washington, D.C. 20219

Press Release
For immediate release

October 16, 1979

The Examination Council announced today that the five Federal
bank and thrift institution regulators represented on the Council have
adopted the attached Policy Statement on Discrimination, as recommended
to them by the Council.

Board of G o v ern o rs of the Federal Reserve System , Federal D eposit Insurance C o rp o ratio n , Federal H om e Loan B ank Board,
N atio n al C redit U nion A d m in istra tio n , O ffice of the C o m p tro ller of the C u rre n c y

Federal Institutions Examination Council. Washington, D.C. 20219


The Comptroller of the Currency/ the Federal Deposit Insurance C or por a­
tion, the Federal Reserve Board, the Federal Home Loan Bank Board and
the Na tional Credit Union Administration, as federal agencies responsible
for the regulation and supervision of depository institutions, in
cooperation with other responsible authorities, are committed to
identifying and eliminating illegal discrim ina ti on and to encouraging
no n- dis criminatory practices in the operations of these institutions.
Over the years, the attention of the federal financial regulatory
agencies has focused especially on such matters as discrimination on
the basis of race, religion, national origin, sex, and marital status
in the provision of lending and other financial services and the
discriminatory aspects of mortgage and other lending practices whi ch
may have a disparate impact on various neighborhoods and communities.
The various efforts of the agencies have been directed towards the
enforcement of prohibitions against such discrimination, the develo pme nt
by the institutions they supervise of appropriate remedial or affir ma­
tive actions to help eradicate the effects of past discrimination, and
the sponsorship or support of numerous special-emphasis programs that
have the objective of assisting the financial institutions to meet
the credit needs of all segments of the communities which they serve.
Within the boundaries of their jurisdiction, the five federal financial
regulatory agencies are committed to effec tiv e enforcement of the
various civil rights laws of the nation.
The agencies believe that
illegal dis cri mination is contrary to the best interests of not only
the people discriminated against but also the financial institutions
The provision of employment opportunity without di scr imination on any
prohibited basis is first and foremost the legal responsibility of the
employer, and it is the policy of the agencies that the financial
institutions wh ic h they regulate should review periodically their
employment practices to ascertain that they are, in fact, non -discriminatory
and, to the extent that any discrimination is found, adopt appropriate
remedial policies and practices to eliminate it.
Such an examination of employment practices should include consideration
of the institutions' policies regarding the payment of dues on behalf
of employees to private clubs which discriminate on the basis of race,
sex, religion, color, or national origin.
Because business is commonly
conducted at such clubs, membership prohibition may have an adverse
and discriminatory effect upon the career advancement of employees who
are denied equal opportunity to access either as members or guests.
iin a rd ot G o ve rn o rs o f the Federal Reserve System. Federal Deposit Insurance C o rp o ra tio n .
N a tio n a l C red it U n io n A d m in is tra tio n . O ttic e ot the C o m p tro lle r o f the C u rre n cy

Federal Hom e Loan Bant. Board.



For this reason, the agencies discourage the payment by financial
institutions, on behalf of their employees, officers or directors, of
fees or dues for me mbership in private clubs wher e business is
commonly conducted, which so discriminate.
Payment by financial
institutions of the costs of any business or social function held at
any such club or organization which practices dis cr imination is also

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