Banks in MO, TX areas affected by floods, storms, tornadoes get FDIC guidance

The federal bank deposit insurer on Friday issued guidance to provide some regulatory relief to banks in Missouri and Texas affected by recent severe storms and flooding – and in Missouri, tornadoes – to make it easier for banks to help facilitate recovery there.

The Federal Deposit Insurance Corp. (FDIC) noted that in areas of Missouri, severe storms, tornadoes, and flooding caused significant property damage from April 29 and continuing. A federal disaster was declared July 9. In areas of Texas, severe storms and flooding caused significant property damage from June 24 to 25. A federal disaster was declared July 17.

The agency issued two Financial Institution Letters (FILs) Friday that encourage banks to work constructively with affected borrowers. The FILs noted that extending repayment terms, restructuring existing loans, or easing terms for new loans can help as long as they are done in a manner consistent with sound banking practices.

The agency also noted that banks may receive Community Reinvestment Act (CRA) consideration for community development loans, investments, and services to support disaster recovery.

FIL-44-2019 – Missouri

FIL-45-2019 – Texas

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