With all the coverage of the devastating effects of Hurricane Helene over the past 24 hours, it may be easy to forget the impact of an earlier storm – Tropical Storm Debby – for which the Federal Deposit Insurance Corp. (FDIC) Friday offered regulatory relief to affected banks in Georgia.
Meanwhile, other storm damage in Vermont prompted a similar offer Friday for banks in affected areas of Vermont.
The FDIC, in a release, said the effects of Debby ravaged parts of Georgia and caused “significant property damage” Aug. 4 -20. The agency noted that the Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in Georgia on Sept. 24, and that FEMA “may make additional designations after damage assessments are completed in the affected areas.”
In another release, also Friday, the FDIC said severe storms, flooding, landslides, and mudslides caused significant property damage in areas of Vermont from July 29-31. FEMA also declared a federal disaster for selected areas affected in Vermont on Sept. 24, and said that it may also make additional designations after assessments in the affected areas.
The agency said it was providing typical regulatory relief for banks in affected areas in the wake of those storm systems. That is: 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.