REGULATORY RELIEF

The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps intended to facilitate the process of rebuilding in Houston and surrounding communities damaged by the storm.

As noted in the attached guidelines, the FDIC is encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. The guidelines suggest that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can both contribute to the health of the community and serve the long-term interests of the lending institution. The guidelines also address other types of regulatory relief.

For guidance on these and related matters, please contact Assistant Regional Director Nann E. Wright in the Dallas Regional Office at (972) 761-2013.

Attachment:
Supervisory Practices Regarding Depository Institutions and Borrowers Affected by Tropical Storm Allison

Distribution: FDIC-Supervised Banks in the Dallas Region

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).