Nasty weather in the northeast, the Midwest and the southeast – particularly the effects of an approaching hurricane – have prompted federal banking regulators to offer regulatory relief to institutions in those areas, the agencies said Wednesday.
Regarding the effect of the approaching Hurricane Helene – expected to affect southeastern states including Florida, Alabama, Georgia and Tennessee – the Office of the Comptroller of the Currency (OCC) allowed national banks and federal savings associations in those states to close early.
“In issuing the proclamation, the OCC expects that only those bank offices directly affected by potentially unsafe conditions will close,” the OCC said in a release. “Those offices should make every effort to reopen as quickly as possible to address the banking needs of their customers.”
The storm is expected to make landfall in Florida by Thursday.
The agency said its Bulletin 2012-28, “Supervisory Guidance on Natural Disasters and Other Emergency Conditions” (dated Sept. 21, 2012), provides guidance on actions bankers could consider implementing when their bank or savings association operates or has customers in areas affected by a natural disaster or other emergency.
Earlier Wednesday, the Federal Deposit Insurance Corp. (FDIC) offered regulatory relief to banks in areas of Connecticut and Illinois affected by storms. In the Nutmeg State, the storms resulted in flooding, landslides and mudslides, the agency said. In the Prairie State, the storms resulted in tornadoes, straight-line winds, and flooding, according to FDIC.
As it typically does in such circumstances, the FDIC said banks in the areas affected by the storms are encouraged to work constructively with borrowers having difficulties beyond their control because of damage caused by severe storms, winds and flooding.
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.