Two sets of frequently asked questions (FAQs) – one for financial institutions, one for consumers – about the financial impact of the coronavirus crisis were released Thursday by the federal insurer of bank deposits, including about electing to apply the new community bank leverage ratio (CBLR)
In a Financial Institution Letter (FIL-18-2020), the Federal Deposit Insurance Corp. (FDIC) said the FAQs address a variety of issues that may arise as financial institutions work with customers and communities affected by the coronavirus.
For financial institutions, the questions cover such areas as payment accommodations, delinquent loan reporting, documentation, troubled debt restructurings, nonaccrual status, allowance for credit losses (ACL), allowance for loan and lease losses (ALLL), charge-offs, alternative service options, filing applications, report filing difficulties, security, cash management, real property inspections (and appraisals), and the Bank Secrecy Act.
Regarding CBLR, the FAQ advises that the decision to delay the CBLR election rests with the financial institution. “Financial institutions have until April 30, 2020 to file the March 31, 2020 Reports of Condition and Income (March Call Reports) that reflect their CBLR election,” the FAQ states. “The decision to elect CBLR for the March Call Report is not binding, and may be reversed in a subsequent quarter.”
For customers, 20 questions cover such areas as deposit insurance coverage at closed or restricted branches, availability of cash, deposit insurance coverage in general, determining deposit insurance coverage, how to contact a bank (or determine access to banking services), check holds, access to cash when ATMs are not available (or an option), cashing out certificates of deposit, access to banks, wire transfers, fraud and scams, and more.
Frequently Asked Questions (FAQs) For Financial Institutions and Consumers Affected by the Coronavirus (FIL-18-2020)