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.