Banks in areas of LA affected by winter storms extended regulatory relief

Banks in areas of Louisiana affected by winter storms last month have been extended regulatory relief intended to facilitate recovery in their communities, the Federal Deposit Insurance Corp. (FDIC) said Monday.

In guidance issued by the agency via a financial institution letter (FIL), the agency said all FDIC-supervised institutions in areas affected by the severe winter storms have been extended the relief for the impact of storms Feb. 11-19 in Louisiana. A federal disaster for selected areas affected in Louisiana was declared on March 9.

Among other things, the FDIC said it is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe winter storms. It added that:

  • 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.
  • Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.

FDIC FIL-18-2021: Regulatory Relief