Regulatory relief measures aimed at facilitating disaster relief in areas of North Carolina affected by remnants of Tropical Storm Fred were outlined for banks and savings institutions Monday by the federal insurer of bank deposits.
The Federal Deposit Insurance Corp. (FDIC), in a Financial Institution Letter (FIL), encouraged institutions in such areas to work constructively with borrowers experiencing difficulties beyond their control because of Fred-related damage. Such work may include extending repayment terms, restructuring existing loans, or easing terms for new loans “in a manner consistent with sound banking practices,” it said.
The FDIC, as it does in such instances, also noted that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery; and that the agency will also consider regulatory relief from some filing and publishing requirements. More details are in the FIL.