Banks in Guam are being encouraged to work with borrowers experiencing difficulties beyond their control because of damage caused by Typhoo Mawar, the federal bank deposit insurance agency said Friday.
In a Financial Institution Letter (FIL-27-2023), the Federal Deposit Insurance Corp. (FDIC) said there was “significant property damage” in Guam dating from May 22 forward as a result of the typhoon. The Federal Emergency Management Agency (FEMA) declared a federal disaster for the U.S. territory on May 25, the letter states.
“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,” the FDIC said in its letter. It added that favorable Community Reinvestment Act (CRA) consideration could be given for community development loans, investments, and services in support of disaster recovery.