FDIC Issues Coronavirus-Related FAQs for Banks, Consumers

The FDIC today issued two sets of frequently asked questions addressing banker and consumer concerns related to the coronavirus pandemic.

The FAQs for banks address:

  • Payment accommodations, including reporting of delinquent loans and how accommodations are documented and reported.
  • Operational challenges, including limiting access to branch offices, filing requirements, security issues associated with masked customers and cash management.

Meanwhile, the consumer FAQ assures customers that the bank is the safest place for their money and that a branch closure or lobby closure has no bearing on an account’s insured status and addresses other questions about how the FDIC is encouraging banks to handle customer difficulties.

Following their statement on Tuesday urging banks to use their capital and liquidity buffers to help meet the needs of borrowers amid the coronavirus pandemic, the federal banking agencies today issued a Q&A document addressing several questions they have fielded about the statement and an associated interim final rule.

The Q&As address: the meanings of a liquidity buffer and a capital buffer; implications of draws on the discount window for the Liquidity Coverage Ratio; the intersection of the statement on buffers with recovery or resolution plan triggers; and the application of the statement to total loss-absorbing capacity.