The Federal Reserve, FDIC, Office of the Comptroller of the Currency, National Credit Union Administration and Florida Office of Financial Regulation today issued a joint statement on supervisory practices regarding financial institutions affected by Hurricane Milton.
Financial institutions should work constructively with borrowers in communities affected by Milton, 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, they added. The agencies also acknowledged that many financial institutions face challenges with staffing, power and telecommunications following the storm.
“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 to those affected by Hurricane Milton,” they said.
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 that take reasonable and prudent steps to comply with regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the storm.
Financial institutions may receive Community Reinvestment Act 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. They are also encouraged to monitor municipal securities and loans affected by Hurricane Milton.
Separately, the FDIC today released supervisory guidance for institutions affected by Milton.
