Regulatory Relief Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Kentucky Affected by Severe Storms and Flooding
FIL-29-2009 June 4, 2009
The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Kentucky affected by recent severe storms, tornadoes, mudslides and flooding.
Severe storms, tornadoes, flooding and mudslides that began on May 3, 2009, have caused significant property damage in Kentucky.
A federal disaster was declared on May 29, 2009, and includes individual assistance for Breathitt, Floyd, Owsley, and Pike counties.
The FDIC is encouraging banks to work constructively with borrowers who are experiencing difficulties beyond their control because of damage caused by these disasters.
Extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution.
The FDIC also will consider granting regulatory relief from certain filing and publishing requirements.
FDIC-Supervised Banks (Commercial and Savings)