#California Wildfires Devastate Financial Institutions#
Hot Topic Overview
Overview
California wildfires and straight-line winds have had a significant impact on financial institutions, affecting many of their clients and operations. To assist affected institutions, federal and state financial regulators have issued a joint statement offering regulatory relief. The statement encourages financial institutions to meet the financial services needs of affected communities and to work constructively with affected borrowers, including modifying or altering loan terms. Regulators will also consider the unusual circumstances facing affected institutions and expedite the approval process for temporary facilities. Additionally, regulators will be lenient with institutions that are unable to fully meet regulatory reporting requirements due to the disaster, and they encourage financial institutions to monitor municipal securities and loans in disaster areas.
Ace Hot Topic Analysis
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Financial regulators will provide appropriate regulatory relief to financial institutions affected by the California wildfires and straight-line winds, and encourage financial institutions to meet the financial service needs of their communities.
Financial institutions should work constructively with borrowers in impacted areas and exercise prudent judgment in modifying or changing existing loan terms in impacted areas.
Financial regulators will consider the unusual circumstances faced by impacted institutions and expedite requests for any operational temporary facilities on a case-by-case basis.
Financial institutions may receive CRA consideration for community development loans, investments, or services to revitalize or stabilize a federal disaster area designated in their assessment area or the state or states that include their assessment area.