In a joint statement today, state and federal banking agencies said they recognize the serious effects of Hurricane Helene on the customers and operations of many financial institutions and will provide those institutions with appropriate regulatory assistance. The Federal Reserve, FDIC and Office of the Comptroller of the Currency were among the agencies joining the statement.
Financial institutions should work constructively with borrowers in communities affected by Helene, the agencies said. “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. In accordance with U.S. generally accepted accounting principles, institutions should individually evaluate modifications of existing loans to determine whether they represent troubled debt restructurings or modifications to borrowers experiencing financial difficulty, as applicable.”
In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, requests to operate temporary facilities to provide services to customers, the agencies said. They also said that institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.
The agencies said they do not expect to assess penalties or take other supervisory action against institutions affected by Helene, as long as those institutions take reasonable and prudent steps to comply with regulatory reporting requirements. They also noted that institutions may receive Community Reinvestment Act consideration for community development loans, investments or services that revitalize or stabilize federally designated disaster areas.
Finally, the agencies encouraged institutions to monitor municipal securities and loans affected by Helene. “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,” they said.
