Banks in areas of CA, TN eligible for reg relief after torrential rains, tornadoes, mudslides, winds and more

Banks in areas of California and Tennessee affected by storm damage, flooding, tornadoes, mudslides and wind (among other things) are eligible for regulatory relief from the federal bank deposit insurance agency, it announced Thursday.

According to the Federal Deposit Insurance Corp. (FDIC), the affected areas in California are in Kern, Mariposa, Monterey, San Benito, Santa Cruz, Tulare, and Tuolumne counties. In Tennessee, the affected areas are in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton, and Wayne counties.

In separate financial institution letters (FILs) the agency said:

  • The Federal Emergency Management Agency (FEMA) declared a federal disaster for the selected areas affected in California on April 3, and for the selected areas affected in Tennessee on April 7. The agency said FEMA may make additional designations after damage assessments are completed in the affected areas.
  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused (in Alabama) by severe storms, straight-line winds and tornadoes, and (in California) by severe winter storms, flooding, landslides, and mudslides.
  • 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.
  • Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of California Affected by Severe Winter Storms, Straight-line Winds, Flooding, Landslides and Mudslides

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Tennessee Affected by Severe Storms, Straight-line Winds, and Tornadoes