#California wildfire officials issue statement#
Hot Topic Overview
Overview
California wildfires and straight-line winds have had a significant impact on the customers and operations of many financial institutions. In response, federal and state financial regulators have jointly issued a cross-agency statement indicating they will provide appropriate regulatory relief to impacted institutions. The statement encourages financial institutions to meet the financial service needs of disaster-affected communities and to work constructively with impacted borrowers, including modifying or changing loan terms and reporting modifications appropriately. Regulators will also take into account the unusual circumstances faced by institutions in disaster areas and expedite approvals for temporary facility requests to facilitate disaster relief. In addition, regulators will consider the difficulties institutions may face in meeting reporting requirements and will not penalize institutions that take reasonable steps to comply with regulatory reporting requirements. Finally, the statement encourages financial institutions to monitor municipal securities and loans in affected areas and to make prudent efforts to stabilize such investments.
Ace Hot Topic Analysis
Analysis
California wildfires and straight-line winds have severely impacted the clients and operations of many financial institutions. Federal and state financial regulators have issued a joint statement indicating that they will provide appropriate regulatory relief to affected institutions. The statement encourages financial institutions to meet the financial services needs of the affected communities and to work constructively with borrowers in the affected areas, including prudently adjusting or modifying existing loan terms, which should not be criticized by examiners. Regulators will also take into account the unusual circumstances faced by affected institutions and expedite requests for temporary facilities to facilitate access for disaster victims, where appropriate. Additionally, regulators will be understanding and supportive of affected institutions facing difficulties in meeting institutional reporting requirements, and will not penalize institutions taking reasonable measures to comply with regulatory reporting requirements. Finally, regulators encourage financial institutions to monitor municipal securities and loans in affected areas and to prudently take steps to stabilize such investments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Financial regulators will provide appropriate regulatory relief to financial institutions affected by the California wildfires and straight-line winds, and encourage them to meet the financial services needs of affected communities.
Regulators encourage financial institutions to work constructively with borrowers in affected areas and to support prudent modifications or changes to existing loan terms in affected areas.
Regulators will take into account the extraordinary circumstances faced by affected institutions and will expedite requests for temporary facilities to provide more convenient services to disaster victims, as appropriate.
Regulators will be understanding and supportive of any difficulties affected institutions may have in meeting reporting requirements, and will not penalize or take other supervisory action against institutions that take reasonable steps to comply with regulatory reporting requirements.