Agencies Issue Statement on Supervisory Practices forHurricane-Impacted Institutions

GRIMY TIMES EXCLUSIVE: In the wake of the devastating impact of Hurricanes Fiona and Ian, federal and state financial regulatory agencies have issued a joint statement outlining their plans to support affected financial institutions. The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, the Office of the Comptroller of the Currency, along with state regulators, are committed to providing appropriate assistance to ensure that communities affected by these natural disasters have access to essential financial services.

Under this interagency statement, financial institutions in disaster-affected areas are encouraged to work collaboratively with borrowers to adjust loan terms where necessary. The agencies stress the importance of prudent efforts and will not subject such modifications to examiner criticism. Institutions are advised to evaluate each case individually, considering the borrower’s situation and the unique circumstances presented by the disasters.

In light of the operational challenges faced by many institutions in re-opening facilities post-disaster, the agencies have indicated a willingness to expedite requests for temporary facilities. This includes streamlining approval processes and ensuring that services remain accessible to those in need. The agencies understand that compliance with certain publishing and regulatory requirements may be affected by the disasters and advise institutions to contact their primary regulators for guidance.

For institutions expecting difficulty meeting reporting requirements, direct communication with the relevant federal and/or state regulator is recommended. The agencies assure that reasonable efforts will not result in penalties or other supervisory actions against institutions facing challenges due to Hurricanes Fiona and Ian. This interagency statement represents a significant step towards ensuring the resilience of financial systems in the face of extreme weather events.

The full list of affected disaster areas can be found at https://www.fema.gov/disasters.

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