Regulators vow regulatory assistance to institutions in inundated Midwest

Federal banking and credit union regulators – along with state supervisory authorities – will provide “appropriate regulatory assistance” to financial institutions they oversee that are affected by the massive flooding in the upper Midwest, the agencies said Monday in a joint release.

The Federal Reserve, Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency (OCC) and the National Credit Union Administration (NCUA) – along with the Conference of State Bank Supervisors (CSBS), representing state supervisors – said in their joint statement that they encouraged institutions operating in the affected areas to meet the financial services needs of their communities. They listed five areas where the agencies would work with financial institutions:

Lending: ”Financial institutions should work constructively with borrowers in communities affected by flooding in the Midwest. Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism.”

Temporary Facilities: ”The agencies understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after the flooding in the Midwest.  In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by flooding in the Midwest.”

Publishing Requirements: ”The agencies understand that the damage caused by flooding in the Midwest may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations.”

Regulatory Reporting Requirements: “Institutions affected by flooding in the Midwest that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation.”

Community Reinvestment Act (CRA): “Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.”

Investments: “The agencies realize local government projects may be negatively affected by flooding in the Midwest.  Institutions should monitor municipal securities and loans affected by flooding in the Midwest.”

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Flooding in the Midwest

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by flooding in the Midwest