FDIC: Guidance to Help Financial Institutions and Facilitate Recovery in Areas of American Samoa Affected by Tropical Storm Gita

Summary:

The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of American Samoa affected by Tropical Storm Gita.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.

Highlights:

• Tropical Storm Gita caused significant property damage in areas of American Samoa during the period of February 7 to February 12, 2018.
• A federal disaster for selected areas in American Samoa was declared on March 2, 2018. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov.
• The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the tropical storm.
• 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 local community and serve the long-term interests of the lending institution.
• Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
• The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Continuation of FIL-19-2018