FDIC directs reg relief to Puerto Rico areas affected by storms, tornadoes

A measure of regulatory relief for financial institutions to help facilitate recovery in areas of Puerto Rico affected by severe storms, straight-line winds and tornadoes, was announced Tuesday by the federal bank deposit insurer.

The Federal Deposit Insurance Corp. (FDIC), in a Financial Institution Letter (FIL), pointed to the severe storms, flooding and landslides that caused significant property damage in areas of Puerto Rico from Feb. 4-6, and which drew a federal disaster declaration in March by the Federal Emergency Management Agency (FEMA).

The FDIC said it is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather. This may include measures such as extending repayment terms, restructuring existing loans, or easing terms for new loans (with sound banking practices in mind).

The agency reminded that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.

FDIC FIL-15-2022