Steps to provide regulatory relief to banks and facilitate recovery in areas of Florida affected by Hurricane Sally include potential, favorable Community Reinvestment Act (CRA) consideration for disaster-related community development loans, investments, and services, the federal insurer of bank deposits said Friday.
The Federal Deposit Insurance Corp. (FDIC), in a Financial Institution Letter, said it is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by Hurricane Sally. “Banks that extend repayment terms, restructure existing loans, or ease terms for new loans 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,” it said.
Relief available to banks may also apply to certain filing and publishing requirements, the agency said.