Severe storms in areas of Mississippi – including straight-line winds, tornadoes and flooding — spurred a “regulatory relief” pronouncement Wednesday for banks in areas affected by the storms, according to the federal insurer of bank deposits.
The Federal Deposit Insurance Corp. (FDIC) said the April 8-11 storms caused significant property damage in the state. A federal disaster in selected areas of Mississippi was declared June 10 by the Federal Emergency Management Administration (FEMA), FDIC said, and banks in those areas are provided the regulatory relief.
The agency said, because of the statements, banks are encouraged to work constructively with borrowers having difficulties beyond their control because of damage caused by severe storms, winds and flooding.
The agency said that banks extending repayment terms, restructuring existing loans, or easing terms for new loans “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.” Additionally, FDIC said, banks in the areas may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery, and that it will also consider regulatory relief from certain filing and publishing requirements for banks in the affected areas.