A series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Alabama affected by severe storms, straight-line winds, and tornadoes was announced in a Financial Institution Letter (FIL) Thursday from the Federal Deposit Insurance Corp. (FDIC).
The letter (FIL-11-2019) points to the severe weather events that caused significant property damage in areas of Alabama from March 3, 2019, “and continuing.” It notes that a federal disaster for selected areas in Alabama was declared March 5, and additional designations may be made after damage assessments are completed in the affected areas.
The FDIC says it’s encouraging banks to work constructively with affected borrowers. It added:
- Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
- Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
- The FDIC also will consider regulatory relief from certain filing and publishing requirements.