FDIC offers guidance to P.R. banks to ease earthquake recovery efforts
The FDIC announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Puerto Rico affected by earthquakes.
In a release, the regulatory body stated the measures would apply to all FDIC-supervised financial institutions with total assets under $1 billion.
The FDIC is encouraging banks to “work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the earthquakes.”
This includes 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.”
The assistance would apply to towns included in the federal emergency declaration, namely Adjuntas, Cabo Rojo, Corozal, Guánica, Guayanilla, Jayuya, Lajas, Lares, Maricao, Peñuelas, Ponce, San Germán, San Sebastián, Utuado, Villalba and Yauco.
“Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery,” the FDIC said, adding it will consider regulatory relief from certain filing and publishing requirements.