The federal bank deposit insurer is working to provide regulatory relief and facilitate recovery in areas of Texas affected by Tropical Storm Imelda, the agency said in a Financial Institution Letter (FIL) Thursday.
In the letter, the Federal Deposit Insurance Corp. (FDIC) said it is encouraging banks to work constructively with borrowers having difficulties beyond their control due to damage from the 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 letter states.
The letter notes that Tropical Storm Imelda caused significant property damage in areas of Texas from Sept. 17-23; a federal disaster was declared for selected areas Oct. 4.
The FDIC says banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery; the agency also will consider regulatory relief from certain filing and publishing requirements.