FDIC outlines relief for institutions in storm-hit areas in Wisconsin

Regulatory relief for banks and savings institutions in areas of Wisconsin affected by severe storms, tornadoes, straight-line winds, flooding and landslides in recent weeks is spelled out in a Financial Institution Letter issued Thursday by the Federal Deposit Insurance Corp. (FDIC).

The severe conditions were the cause of significant property damage from Aug. 17 to Sept. 14, the letter says, and a federal disaster for selected areas in the state was declared Oct. 18. FDIC notes additional designations may be made after damage assessments are completed. (A current list of designated areas is available at www.fema.gov.)

Meanwhile, the agency notes:

  • 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.

FIL-65-2018 – HTML

FIL-65-2018 – PDF