Some regulatory easing was announced Tuesday to help banks facilitate recovery in areas of Texas affected by Hurricane Beryl earlier this month.
As it does in such situations, the Federal Deposit Insurance Corp. (FDIC) said it was encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the hurricane.
“Banks that extend repayment terms, restructure existing loans, or ease 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,” it said.
It added that 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.