September 29, 2022
Federal and state monetary regulatory businesses problem interagency assertion on supervisory practices relating to monetary establishments affected by Hurricanes Fiona and Ian
Board of Governors of the Federal Reserve System
Convention of State Financial institution Supervisors
Federal Deposit Insurance coverage Company
Nationwide Credit score Union Administration
Workplace of the Comptroller of the Forex
For launch at 1:00 p.m. EDT
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance coverage Company, the Nationwide Credit score Union Administration, the Workplace of the Comptroller of the Forex, and state monetary regulators, collectively the businesses, acknowledge the intense impression of Hurricanes Fiona and Ian on the shoppers and operations of many monetary establishments and can present applicable regulatory help to affected establishments topic to their supervision. The businesses encourage establishments working within the affected areas to fulfill the monetary providers wants of their communities.
A whole record of the affected catastrophe areas might be discovered at https://www.fema.gov/disasters.
Lending: The businesses encourage monetary establishments to work constructively with debtors in communities affected by Hurricanes Fiona and Ian. Prudent efforts to regulate or alter phrases on current loans in affected areas are supported by the businesses and shouldn’t be topic to examiner criticism. In accordance with U.S. typically accepted accounting rules, establishments ought to individually consider modifications of current loans to find out whether or not they signify troubled debt restructurings or modifications to debtors experiencing monetary problem, as relevant. In making this analysis, establishments ought to think about the information and circumstances of every borrower and modification. In supervising establishments affected by Hurricanes Fiona and Ian, the businesses will think about the bizarre circumstances these establishments face. The businesses acknowledge that efforts to work with debtors in communities underneath stress might be in keeping with safe-and-sound practices in addition to within the public curiosity.
Momentary Amenities: The businesses perceive that many monetary establishments face staffing, energy, telecommunications, and different challenges in re-opening services after Hurricanes Fiona and Ian. In instances through which operational challenges persist, the first federal and/or state regulator will expedite, as applicable, any request to function momentary services to supply extra handy availability of providers to these affected by Hurricanes Fiona and Ian. Typically, a phone discover to the first federal and/or state regulator will suffice initially to begin the approval course of, with obligatory written notification being submitted shortly thereafter.
Publishing Necessities: The businesses perceive that the injury brought on by Hurricanes Fiona and Ian might have an effect on compliance with publishing and different necessities for department closings, relocations, and momentary services underneath numerous legal guidelines and rules. Establishments experiencing disaster-related difficulties in complying with any publishing or different necessities ought to contact their main federal and/or state regulator.
Regulatory Reporting Necessities: Establishments affected by Hurricanes Fiona and Ian that anticipate to come across problem assembly the businesses’ reporting necessities ought to contact their main federal and/or state regulator to debate their scenario. The businesses don’t anticipate to evaluate penalties or take different supervisory motion in opposition to establishments that take cheap and prudent steps to adjust to the businesses’ regulatory reporting necessities if these establishments are unable to completely fulfill these necessities due to Hurricanes Fiona and Ian.
The businesses’ staffs stand able to work with affected establishments that could be experiencing issues fulfilling their reporting tasks, bearing in mind every establishment’s specific circumstances, together with the standing of its reporting and recordkeeping programs and the situation of its underlying monetary information.
Neighborhood Reinvestment Act (CRA): Monetary establishments might obtain CRA consideration for neighborhood improvement loans, investments, or providers that revitalize or stabilize federally designated catastrophe areas of their evaluation areas or within the states or areas that embody their evaluation areas. For added data, check with the Interagency Questions and Solutions Concerning Neighborhood Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm.
Investments: Establishments are inspired to observe municipal securities and loans affected by Hurricanes Fiona and Ian. The businesses notice native authorities initiatives could also be negatively affected by the catastrophe and encourage establishments to have interaction in applicable monitoring and take prudent efforts to stabilize such investments.
For extra data, check with the Interagency Supervisory Examiner Steerage for Establishments Affected by a Main Catastrophe, which is obtainable as follows:
FDIC: https://www.fdic.gov/news/news/financial/2017/fil17062.html
FRB: https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf (PDF)
OCC: https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html