Banks serving areas of Montana affected by severe flooding from a storm have been granted some regulatory relief from the federal insurer of bank deposits, the agency said Tuesday.
In a release, the Federal Deposit Insurance Corp. (FDIC) said the June 10 storm and flooding caused significant property damage in areas of the Treasure state, leading the Federal Emergency Management Agency (FEMA) to declare a disaster area in the affected areas on June 16 (additional declarations may be forthcoming, the agency noted).
As a result, the FDIC said it is:
- Encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe storm and flooding.
- Advising 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.
- Notifying banks that they may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
- Also considering regulatory relief from certain filing and publishing requirements as necessary.