#California Wildfires Impact Financial Institutions#
Hot Topic Overview
Overview
California wildfires and straight-line winds have severely impacted financial institutions. Federal and state financial regulators issued a cross-agency statement indicating that they will provide regulatory relief to impacted institutions. The statement encourages financial institutions to work with borrowers in affected communities and to support prudent adjustments or modifications to loan terms. Regulators will also expedite the approval of temporary facilities and take a lenient approach to institutions that cannot meet reporting requirements due to the disaster. Additionally, regulators encourage financial institutions to monitor municipal securities and loans in affected areas and to exercise prudence in efforts to stabilize such investments.
Ace Hot Topic Analysis
Analysis
California wildfires and straight-line winds have had a significant impact on customers and operations of many financial institutions, prompting federal and state financial regulators to issue a joint statement pledging regulatory assistance to affected institutions. The statement encourages financial institutions to meet the financial service needs of the affected communities and work constructively with borrowers in impacted areas, including prudently adjusting or modifying existing loan terms to help borrowers through this difficult time. Regulators will also consider the unusual circumstances faced by institutions affected by the disaster and will expedite any requests for temporary operating facilities to facilitate assistance to affected individuals, as appropriate. Additionally, regulators will consider the difficulties that affected institutions may encounter in meeting reporting requirements and will not penalize institutions that take reasonable steps to comply with regulatory reporting requirements. Finally, regulators encourage financial institutions to monitor municipal securities and loans in affected areas and to make prudent efforts to stabilize such investments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Financial institutions should provide appropriate regulatory assistance to communities affected by California wildfires and straight-line winds and meet their financial service needs.
Financial institutions should work constructively with borrowers in affected areas and prudently adjust or modify existing loan terms, and should not be subject to examiner criticism.
Regulators will consider the unusual circumstances faced by affected institutions and expedite any requests for temporary operating facilities, as appropriate, to provide more convenient service to affected individuals.
Regulators will take a lenient approach to institutions that are unable to fully meet regulatory reporting requirements due to the disaster, and will work with affected institutions to help them meet their reporting responsibilities.