State and federal regulators are encouraging banks to work with borrowers hit hardest by Hurricanes Fiona and Ian this month.
The Federal Reserve, Federal Deposit Insurance Corp., National Credit Union Administration and Office of the Comptroller of the Currency announced Thursday that they would not penalize the institution they supervise for "prudent efforts" to adjust loan terms for impacted borrowers.
"In supervising institutions affected by Hurricanes Fiona and Ian, the agencies will consider the unusual circumstances these institutions face," the regulators said in a joint statement. "The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest."
Hurricane Ian made landfall Wednesday, barreling into southwest Florida as a Category 4 storm with winds up to 150 miles per hour and several feet of storm-water surge, according to The
On Sept. 18, Hurricane Fiona struck Puerto Rico with heavy rains and winds well over 100 mph. The entire island of 3.2 million people lost power during the storm. Hundreds of thousands remain without power still.
The federal groups, along with state regulators represented by the Conference of State Bank Supervisors, said they would allow impacted banks to operate from temporary facilities, if need be, and they would not penalize institutions that fail to meet publishing and regulatory reporting requirements because of storm-related disruptions.
For all issues, the agencies urged hard-hit banks to contact their state or federal regulator to report problems and seek accommodations.
"The agencies' staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution's particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records," the entities said in their statement.
Regulators urged banks to continue serving their customers throughout the period of disruption. Their joint statement noted that banks that provide "community development loans, investments, or services that revitalize or stabilize federally designated disaster areas" could qualify for credit under the Community Reinvestment Act.
Meanwhile, the agencies also noted that certain existing investments, such as municipal securities and loans, could be especially vulnerable at this time. They encouraged banks to monitor these assets closely and take steps to stabilize them where possible.
