WASHINGTON–Federal and state regulators have issued a joint statement saying they recognize the serious impact of Texas winter storms on the customers/members and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.
NCUA, along with the Office of the Comptroller of the Currency, the Federal Reserve System, FDIC, and state regulators said they are encouraging institutions operating in the affected areas to meet the financial services needs of their communities.
In the statement the agencies addressed various areas of operations, including:
Lending: The agencies encourage financial institutions to work constructively with borrowers in communities affected by Texas winter storms. “Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism,” the agencies said. “Institutions should individually evaluate modifications of existing loans to determine whether they represent troubled debt restructurings according to U.S. generally accepted accounting principles.
“Institutions should consider the facts and circumstances of each borrower and loan, and apply judgment, as not all modifications will result in a troubled debt restructuring,” the statement continued. “In supervising institutions affected by Texas Winter Storms, the agencies will consider the unusual circumstances these institutions face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.”
Temporary Facilities: The agencies said they understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after Texas winter storms.
“In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by Texas winter storms,” the agencies said.
Publishing Requirements: The agencies said they understand that the damage caused by Texas winter storms may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator, the statement recommends.
Regulatory Reporting Requirements: Institutions affected by Texas winter storms that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation, according to the agencies.
The agencies said they do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements, if those institutions are unable to fully satisfy those requirements because of Texas winter storms.
The agencies said their staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.
Investments: Institutions are being encouraged by the agencies to monitor municipal securities and loans affected by Texas Winter Storms. The agencies realize local government projects may be negatively affected by the disaster and encourage institutions to engage in appropriate monitoring and take prudent efforts to stabilize such investments.
For More Info
A complete list of the affected disaster areas can be found at https://www.fema.gov/disasters.