Banks in areas of Iowa, Kentucky and West Virginia have been extended regulatory relief in the wake of severe storms in their states, the federal insurer of bank deposits said Thursday.
The relief was extended after severe storms ravaged some parts of each state with straight-line winds, tornadoes, flooding, landslides and mudslides, the Federal Deposit Insurance Corp. (FDIC) said.
In separate financial institution letters (FILs), the FDIC said encouraged banks to work constructively with borrowers experiencing difficulties beyond their control due to these events. As it does in such situations, the agency also said banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery. The agency said it will also consider regulatory relief from certain filing and publishing requirements.
The areas in Kentucky and West Virginia affected by storms – April 6 in the former, April 2 in the latter — were declared federal disaster areas May 22. The areas in Iowa affected by the tempests on May 20 were declared federal disaster areas May 24.