Guidance for Sally-affected financial institutions in AL issued by FDIC

Steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Alabama affected by Hurricane Sally were detailed in a Financial Institution Letter issued Wednesday by the Federal Deposit Insurance Corp. (FDIC).

The letter recaps the steps common in the agency’s approach to providing aid to banks and their customers in the face of disaster. For one thing, it encourages banks to work with borrowers having difficulties – for example, by extending repayment terms, restructuring existing loans, or easing terms for new loans (in a safe, sound manner).

The letter (FIL-92-2020) also notes, among other things, that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery. Possible relief from regulatory reporting and publishing requirements, and the expediting of requests to set up temporary facilities, is also explained.

FDIC FIL-92-2020