- with readers working within the Banking & Credit industries
In light of the widespread damage and disruptions caused by Hurricane Helene, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and state financial regulators have issued an interagency statement to provide regulatory guidance and relief to financial institutions operating in the impacted regions.
A Coordinated Response to Support Recovery and Continuity of Service
The agencies acknowledge the severe impact of Hurricane Helene on the customers, communities, and operations of many financial institutions in Florida, Georgia, North Carolina, and South Carolina. The interagency statement outlines supervisory practices that are designed to help these institutions navigate the challenges posed by the disaster while ensuring they can continue to meet the financial needs of their communities.
Key Areas of Guidance and Relief
The interagency statement covers several critical areas where regulators will provide support and flexibility:
- Lending Practices:
- Financial institutions are encouraged to work constructively with borrowers who are facing financial difficulties due to the hurricane's impact. Prudent loan modifications, payment deferrals, and other accommodations that are consistent with safe and sound banking practices will not be subject to regulatory criticism.
- The agencies recognize that temporary modifications made in response to the disaster are often in the best interest of both the borrower and the financial institution, and can help stabilize communities during the recovery period.
- Temporary Facilities:
- Institutions whose physical locations have been damaged or are otherwise inoperable can expedite the establishment of temporary facilities to provide continued access to banking services. Regulators are committed to providing quick approval for such temporary measures, enabling institutions to restore services as swiftly as possible.
- Publishing Requirements:
- Due to potential disruptions in communication channels, financial institutions may face challenges in meeting certain publishing requirements for branch closings, relocations, and temporary facilities. The agencies will offer relief and flexibility in these areas to accommodate the unique circumstances caused by the hurricane.
- Regulatory Reporting Requirements:
- The agencies understand that meeting regulatory reporting deadlines may be difficult for some institutions. They will consider the impact of the hurricane when evaluating requests for delayed submissions and will provide accommodations as appropriate.
- Community Reinvestment Act (CRA)
Consideration:
- Financial institutions that engage in community development activities—such as providing loans, investments, or services that revitalize or stabilize federally designated disaster areas—may be eligible for CRA credit. The agencies encourage institutions to identify opportunities to support recovery and rebuilding efforts in the affected regions.
Additional Information and Resources
Institutions seeking more information can refer to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster for comprehensive details on supervisory expectations and relief measures. Institutions can also reach out to their respective regulatory agencies for guidance specific to their circumstances.
The interagency statement underscores the commitment of federal and state regulators to supporting the recovery and resilience of communities and financial institutions impacted by Hurricane Helene. By working together, institutions and regulators can facilitate a swift and effective recovery, ensuring that essential financial services remain accessible during this challenging time.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
