You are currently viewing FDIC Guidance for Banks Affected by Severe Weather

As Texas continues to experience the effects of severe weather, the Federal Deposit Insurance Corporation (FDIC) has issued guidance to help banks in affected areas.

The FDIC encourages bankers to work constructively with borrowers in communities affected by severe storms, straight-line winds, tornadoes and flooding. The agency realizes the effects of natural disasters on local businesses and individuals are often transitory, and prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism.

Financial institutions may receive CRA consideration for community development loans, investments or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.

Bankers are encouraged to monitor municipal securities and loans affected by severe weather. The FDIC realizes local government projects may be negatively affected and encourages bankers to engage in appropriate monitoring and take prudent efforts to stabilize such investments