WASHINGTON — Banks and credit unions impacted by
"In supervising institutions affected by the Hawaii wildfires, the agencies will consider the unusual circumstances these institutions face," the regulators explained in jointly-issued guidance. "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."
In light of the various facilities destroyed or made uninhabitable by the fires, the agencies said they will expedite requests for temporary banking facilities to help maintain continuity of banking services. Banks can now start the approval process for a temporary facility with as little as a telephone call to their primary federal or state regulator before they submit a formal written request. The guidance also encouraged banks to contact their regulator to report any difficulty in complying with publishing requirements applicable to new, existing or relocated branches.
In addition to outlining steps financial institutions can take to address on-site disruptions, the agencies encouraged them to contact their primary regulator to address any fire-related regulatory compliance lapses. They said agency staffers will take the crisis conditions into account and reward good-faith efforts.
"The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies' regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the Hawaii wildfires," the guidance noted.
The agencies also noted areas where banks can take the opportunity to uplift their communities in a time of need, which is also a standard banks are held to under the Community Reinvestment Act. Banks may receive CRA consideration for community development loans, investments, or services related to the disaster within their assessment areas, the agencies said.
Financial institutions were also alerted to monitor municipal loans and securities affected by the fires and to keep an eye on assets that have been compromised in the disaster.
"The agencies realize local government projects may be negatively affected by the disaster and encourage institutions to engage in appropriate monitoring and take prudent efforts to stabilize such investments," the agencies said.