Steps to help Iowa banks and other financial institutions recover from a devastating “derecho” storm and other tempests earlier in August were released Wednesday by the federal insure of bank deposits.
The Federal Deposit Insurance Corp. (FDIC) noted in its financial institution letter (FIL-81-2020) that a federal disaster area for parts of Iowa was declared Aug. 17 for the storms that occurred on Aug. 10. The agency noted other areas may be added to the disaster zone.
As it typically does in the wake of a disaster declaration, the agency said it:
- Is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
- Advised that actions such as 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.
- Noted banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
- Will consider regulatory relief from certain filing and publishing requirements.