Agencies issue guidance for areas hit by Hurricanes Ian, Fiona

Federal and state banking agencies today issued a series of supervisory practices for banks and other financial institutions affected by hurricanes Ian and Fiona. In a joint statement, the Federal Reserve, FDIC, OCC, National Credit Union Administration and Conference of State Bank Supervisors said they recognize the serious effects of both hurricanes on many financial institutions and will provide appropriate regulatory assistance in response.

Lending: The agencies encouraged financial institutions to work constructively with borrowers affected by the hurricanes. Prudent efforts to adjust or alter terms on existing loans in affected areas are supported by the agencies and should not be subject to examiner criticism.

Temporary facilities: In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services.

Publishing requirements: Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.

Regulatory reporting requirements: 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 Hurricanes Fiona and Ian.

Community Reinvestment Act: Financial institutions may receive CRA consideration for community development loans, investments or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.

Investments: Institutions are encouraged to monitor municipal securities and loans affected by the hurricanes.