Severe storms in areas of Oklahoma – including straight-line winds, tornadoes and flooding – have spurred a “regulatory relief” pronouncement Friday for banks in parts of the state by the federal insurer of bank deposits.
According to the Federal Deposit Insurance Corp. (FDIC), the April 25 storms caused significant property damage in areas of the Sooner State. A federal disaster in selected areas of Oklahoma was declared April 30 by the Federal Emergency Management Administration (FEMA), the FDIC said, and banks in those areas are provided the regulatory relief.
The agency said, because of the statements, banks are encouraged to work constructively with borrowers having difficulties beyond their control because of damage caused by severe storms, winds and flooding.
The agency said that banks extending repayment terms, restructuring existing loans, or easing 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 agency said banks in the areas may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery, and that it will also consider regulatory relief from certain filing and publishing requirements for banks in the affected areas.