#Regulators Offer Financial Support Following California Wildfires#
Hot Topic Overview
Overview
California wildfires and straight-line winds have had a significant impact on the customers and operations of many financial institutions. To assist affected financial institutions, federal and state financial regulators have issued a cross-agency statement offering regulatory relief. The statement encourages financial institutions to work constructively with borrowers in impacted communities and support prudent adjustments or modifications to existing loan terms in affected areas. It also will consider extraordinary circumstances facing affected institutions and expedite requests for temporary facilities to serve disaster victims. Additionally, regulators will consider difficulties faced by affected institutions in meeting reporting requirements and will not penalize institutions for taking reasonable steps to comply with regulatory reporting requirements. Finally, the statement encourages institutions to monitor municipal securities and loans in disaster-affected areas and to exercise prudential efforts to stabilize such investments.
Ace Hot Topic Analysis
Analysis
California wildfires and straight-line winds have significantly impacted many financial institutions' customers and operations. To help affected financial institutions, federal and state financial regulators have issued a cross-agency statement offering regulatory relief. The statement encourages financial institutions to meet the financial service needs of affected communities and work constructively with affected borrowers, including prudently adjusting or modifying existing loan terms to help borrowers navigate the challenges they face. Regulators will take into account the extraordinary circumstances facing affected institutions and will expedite requests for temporary facilities to facilitate the needs of those impacted. Furthermore, regulators will be understanding and supportive of difficulties faced by affected institutions in meeting reporting requirements and will not penalize institutions for taking reasonable steps to comply with regulatory reporting requirements. Finally, regulators encourage financial institutions to monitor municipal securities and loans in affected areas and take prudent steps to stabilize such investments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Regulators will provide appropriate regulatory relief to financial institutions affected by the California wildfires and straight-line winds, and encourage those institutions to meet the financial service needs of impacted communities.
Regulators support constructive engagement between financial institutions and borrowers in impacted communities and encourage prudent adjustments or modifications to existing loan terms in affected areas.
Regulators will consider the extraordinary circumstances facing impacted institutions and expedite, as appropriate, any requests for temporary operational facilities to facilitate the needs of impacted communities.
Regulators will be understanding of difficulties impacted institutions may face in meeting reporting requirements and will not penalize institutions that take reasonable steps to comply with regulatory reporting requirements.