FDIC readies reg relief for FIs affected by TN storms, tornadoes, flooding

Steps the agency is ready to take to help banks and facilitate recovery in areas of Tennessee affected by severe storms, tornadoes, and flooding were outlined in a Federal Deposit Insurance Corp. (FDIC) Financial Institution Letter (FIL) Friday.

The letter noted significant property damage in these areas from March 25 through April 3 and said the Federal Emergency Management Agency (FEMA) declared a federal disaster May 8 for selected areas.

According to the FIL, banks can receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery; and the FDIC will also consider regulatory relief from certain filing and publishing requirements.

“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 stated.

FDIC FIL-33-2021