Banks urged to extend assistance to borrowers in Grand Canyon tribal lands affected by flooding in August

Banks serving borrowers dealing with significant property damage from flooding of Havasupai Tribe lands in Arizona are being offered regulatory relief to extend assistance, the Federal Deposit Insurance Corp. (FDIC) said Thursday.

In a Financial Institution Letter (FIL) the agency said 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.”

The flooding occurred in the tribe’s lands in the Grand Canyon Aug. 22-23; the area was declared a federal disaster for selected areas affected on Oct. 25.

The FDIC also said banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery. The agency also will consider regulatory relief from certain filing and publishing requirements, it said.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Arizona Affected by the Havasupai Tribe Flooding