In a First, Community Development Bank Will Start Up with a National

WASHINGTON - The Office of the Comptroller of the Currency has chartered the first national bank focusing on community development lending.

Neighborhood Development Bank will target southeast San Diego, an underbanked area with many low-income and minority residents, the OCC said. NDB will focus on making affordable housing and small business loans and could open as early as this spring, president Robert McGill said.

NDB said it expects to raise up to $4 billion of its capital through direct investments by other banks. So far California's Wells Fargo Bank, Union Bank, First Interstate, Manufacturers Bank, Scripps Bank, Peninsula Bank, First National of San Diego, Northern Trust and Chase Manhattan Mortgage have signed on.

The bank also aims to raise up to $8 million through a private placement and a public stock offering, Mr. McGill said.

It plans to seek up to $5 million in matching federal funding under the Reigle Community Development and Regulatory Improvement Act of 1994.