FDIC: Guidance for Recovery in Areas of Arkansas Affected by Severe Storms

WASHINGTON, June 17 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-32-2019):

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

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Summary:

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

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 Arkansas from May 21, 2019, and continuing.

* A federal disaster for selected areas in Arkansas was declared on June 9, 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-32-2019 (https://www.fdic.gov/news/news/financial/2019/fil19032.html#continuation)

Suggested Distribution:

FDIC-Supervised Institutions in Arkansas

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 Joseph Meade at (972) 761-2068 or [email protected]

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).