The Federal Deposit Insurance Corporation (FDIC) recently released its guideline for regulatory relief of financial institutions affected by natural disasters in Hawaii. The guide outlines the steps by which it will help these regulated entities make a full recovery from accrued damages.
In April of this year, the Hawaiian islands were recently caught in an onslaught of natural disasters, including severe storms, flooding, landslides, mudslides and volcanic eruptions. A federal disaster was announced for designated areas in Hawaii in May 8, 2018, and amended on June 27, 2018 to allow federal assistance to eligible individuals.
As homes and businesses attempt to recover from the aftermath of these disruptions, the FDIC plans to assist its regulated financial institutions, which include those with total assets under $1 billion. In the guideline, the FDIC
- Encourages banks to work with borrowers dealing with difficulties due to damages caused by severe weather
- Promotes extending repayment terms, restructuring existing loans and creating easier terms for new loans in alignment with sound banking practices to help the health and longevity of local communities
- States that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments and services to facilitate recovery
- Indicates that it will consider giving financial institutions regulatory relief from some filing and publishing requirements
Read the full financial institution letter by the FDIC here.