FDIC: Regulatory Relief – Guidance to Help Financial Institutions and Facilitate Recovery in Areas of California Affected by Wildfires
Targeted News Service
WASHINGTON, Aug. 31 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-60-2021):
The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of California affected by wildfires.
A copy of the Guidance (https://www.fdic.gov/news/financial-institution-letters/2021/fil21060.html#guidance) can be found on the FDIC's website.
Statement of Applicability: This Financial Institution Letter (FIL) applies to all FDIC-supervised financial institutions.
* Wildfires have caused significant property damage in areas of California on July 14, 2021, and are continuing.
* The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in California on August 25, 2021. FEMA may make additional designations 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 wildfires.
* 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.
* Banks may receive favorable Community Reinvestment Act 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.