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Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Alabama Affected by Severe Storms, Straight-line Winds, and Tornadoes

March 07, 2019 / Source: FDIC

Financial Institution Letters

FIL-11-2019
March 7, 2019

Regulatory Relief

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Alabama Affected by Severe Storms, Straight-line Winds, and Tornadoes

Printable Format:

FIL-11-2019 - PDF (PDF Help)

Summary:

The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Alabama affected by severe storms, straight-line winds, and tornadoes.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.

Highlights:

  • Severe storms, straight-line winds, and tornadoes caused significant property damage in areas of Alabama from March 3, 2019, and continuing.
  • A federal disaster for selected areas in Alabama was declared on March 5, 2019. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov.

 

  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
  • Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done 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.
  • Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Continuation of FIL-11-2019

Suggested Distribution:

  • FDIC-Supervised Institutions in Alabama

Suggested Routing:

  • Chief Executive Officer
  • Compliance Officer
  • Chief Lending Officer

Related Topics:

  • Lending
  • Investments
  • Publishing Requirements
  • Consumer Laws
  • Community Reinvestment Act

Contact:

Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at www.fdic.gov/news/news/financial/index.html.

 

To receive FILs electronically, please visit www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).