#Financial regulators are aiding California disaster-stricken banks.#
Hot Topic Overview
Overview
To assist financial institutions in California impacted by wildfires and straight-line winds, federal and state financial regulators have issued a joint statement pledging regulatory relief. The statement indicates that regulators will encourage financial institutions in affected areas to meet the financial service needs of their communities and support institutions in working constructively with affected borrowers, including prudently adjusting or modifying loan terms. Regulators will also consider the extraordinary circumstances faced by affected institutions and expedite approvals for requests for temporary facilities to facilitate service to disaster victims. Furthermore, regulators will be flexible with reporting requirements for affected institutions and encourage institutions to utilize resources such as Community Development Loans to help revitalize affected areas.
Ace Hot Topic Analysis
Analysis
California wildfires and straight-line winds have significantly impacted the clients and operations of many financial institutions. Federal and state financial regulators have issued a cross-agency statement, committing to providing appropriate regulatory relief to affected institutions. The statement encourages financial institutions to meet the financial service needs of the affected communities and work constructively with borrowers, including prudently adjusting or modifying existing loan terms in the impacted areas, which should not be criticized by examiners. Regulators will also consider the extraordinary circumstances faced by affected institutions and expedite, as appropriate, any requests for operational temporary facilities to facilitate service to disaster victims. For institutions unable to fully meet regulatory reporting requirements due to the disaster, regulators will not assess penalties or take other supervisory actions. In addition, financial institutions may be eligible for CRA consideration for community development loans, investments, or services to revitalize or stabilize affected communities. Regulators also encourage financial institutions to monitor municipal securities and loans in disaster-stricken areas and exercise prudent efforts to stabilize such investments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Financial regulators will provide regulatory assistance to financial institutions affected by California wildfires and straight-line winds to help them meet the financial services needs of their communities.
Financial institutions are encouraged to work constructively with borrowers in affected areas and prudently adjust or modify existing loan terms, and should not be subject to criticism from examiners.
Regulators will consider the extraordinary circumstances facing affected institutions and expeditiously process any requests for temporary operating facilities to accommodate affected individuals.
Regulators will take a lenient approach to institutions that are unable to fully meet regulatory reporting requirements due to the disaster and will provide assistance.