Regulatory Relief: Guidance to Help Financial Institutions, Facilitate Recovery in Areas of North Carolina Affected By Tornado, Severe Storms

WASHINGTON, May 16 -- The Federal Deposit Insurance Corporation issued the following financial institution letter:

Summary:

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

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

Highlights:

* A tornado and severe storms caused significant property damage in areas of North Carolina on April 15, 2018.

* A federal disaster for selected areas in North Carolina was declared on May 8, 2018. 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-29-2018

Suggested Distribution:

FDIC-Supervised Banks (Commercial and Savings) in North Carolina

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 Timothy D. Rich at (678) 916-2214 or TRich@fdic.gov

Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at www.fdic.gov/news/news/financial/2018/.

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).