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Guidance to Help Financial Institutions and to Facilitate Recovery in Areas of Louisiana

August 16, 2016 / Source: FDIC

Financial Institution Letters

FIL-54-2016
August 15, 2016

Regulatory Relief
Guidance to Help Financial Institutions and to Facilitate Recovery in Areas of Louisiana Affected by Severe Storms and Flooding

Printable Format: FIL-54-2016 - PDF (PDF Help)

Summary:

The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of Louisiana affected by severe weather.

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 and flooding caused significant property damage in areas of Louisiana beginning August 11, 2016.
  • A federal disaster for selected areas in Louisiana was declared on August, 14, 2016. 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 welfare 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 will consider regulatory relief from certain filing and publishing requirements.

Continuation of FIL-54-2016

Suggested Distribution:

FDIC-Supervised Banks (Commercial and Savings) in Louisiana

Suggested Routing:

Chief Executive Officer

Compliance Officer

Chief Lending Officer

Related Topics:

Lending

Investments

Publishing Requirements

Consumer Laws

Community Reinvestment Act

Contact:

Assistant Regional Director Mark J. Love at (972) 761-2034 or mlove@fdic.gov

Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at https://www.fdic.gov/news/news/financial/2016/.

To receive FILs electronically, please visit http://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).

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