The federal bank deposit insurer on Friday said it was providing some regulatory relief for banks to promote recovery in areas of Louisiana affected by Hurricane Francine.
Noting the hurricane damage that occurred from Sept. 9-12, the Federal Deposit Insurance Corp. (FDIC), in Financial Institution Letter (FIL) 65-2024, said it was encouraging banks “to work constructively with borrowers experiencing difficulties beyond their control” because of it.
“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 also noted that favorable Community Reinvestment Act consideration may be given to banks for community development loans, investments, and services in support of disaster recovery.
Additional information in the letter details what banks should do if they need more time to file required reports, face challenges in complying with requirements to report branch closings and similar developments, and need expedited action on requests to set up temporary banking facilities.
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