Federal Bank Agencies Assist Community Development after Hurricane Maria

A press release by the Federal Deposit Insurance Corporation reveals that federal bank regulatory agencies will give “favorable consideration” to disaster areas affected by Hurricane Maria, predominantly located outside of the U.S. Virgin Islands and Puerto Rico. This will be carried out under Community Reinvestment Act (CRA) regulations, which encourage financial institutions to assist community development and local credit needs.

Hurricane Maria was one of the many natural disasters that devastated the world last year.The hurricane caused detrimental damage to Puerto Rico’s transportation, agricultural, communication and energy infrastructure, left nearly all of the territory without electricity, and cost the lives of many individuals.

“Widespread devastation from Hurricane Maria occurred in areas that are not connected to the U.S. mainland, and the resulting economic impact and other effects may extend to other parts of the United States,” states the press release. “The agencies therefore have determined that it is appropriate to give favorable consideration to community development activities that help to revitalize or stabilize these disaster areas by financial institutions located anywhere in the United States.”

To read the full interagency statement, click here.