Financial institutions in American Samoa affected by Tropical Storm Gita have been extended some regulatory relief to facilitate recovery from the storm, the Federal Deposit Insurance Corp. (FDIC) said Monday.
In a release, the agency said it is implementing a series of steps to help financial institutions and their customers recover from the Feb. 7-12 storm. The agency said it is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the tropical storm.
“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,” the FDIC said in a release.
The agency also noted that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery, and that it will consider regulatory relief from certain filing and publishing requirements.
Guidance to Help Financial Institutions and Facilitate Recovery in Areas of American Samoa Affected by Tropical Storm Gita