Financial Institution Letter
FIL-68-2011
October 20, 2011
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in Areas of
Puerto Rico Affected by Tropical Storm Maria
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to financial
institutions and facilitate recovery in areas of Puerto Rico affected by Tropical Storm Maria.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter
applies to all FDIC-supervised financial institutions.
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Puerto Rico
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act
Contact:
Assistant Regional Director Greg P. Wyka at (917)
320-2550 or gwyka@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC's
Public Information Center, 3501 Fairfax Drive, E-
1002, Arlington, VA 22226 (877-275-3342 or 703-
562-2200).
Highlights:
Tropical Storm Maria caused significant property damage in
areas of Puerto Rico during the period September 8–14, 2011.
A federal disaster for selected areas in Puerto Rico was declared
on October 18, 2011. Additional designations may be made after
damage assessments are completed in the affected areas. A
current list of designated areas is available at www.fema.gov.
The FDIC is encouraging banks to work constructively with
borrowers experiencing difficulties beyond their control because
of damage caused by Tropical Storm Maria.
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.
Banks may receive favorable Community Reinvestment Act
consideration for community development loans, investments,
and services in support of disaster recovery
The FDIC also will consider regulatory relief from certain filing
and publishing requirements.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-68-2011
October 20, 2011
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in Areas of
Puerto Rico Affected by Tropical Storm Maria
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to financial
institutions and facilitate recovery in areas of Puerto Rico affected by Tropical Storm Maria.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter
applies to all FDIC-supervised financial institutions.
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Puerto Rico
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act
Contact:
Assistant Regional Director Greg P. Wyka at (917)
320-2550 or gwyka@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC's
Public Information Center, 3501 Fairfax Drive, E-
1002, Arlington, VA 22226 (877-275-3342 or 703-
562-2200).
Highlights:
Tropical Storm Maria caused significant property damage in
areas of Puerto Rico during the period September 8–14, 2011.
A federal disaster for selected areas in Puerto Rico was declared
on October 18, 2011. Additional designations may be made after
damage assessments are completed in the affected areas. A
current list of designated areas is available at www.fema.gov.
The FDIC is encouraging banks to work constructively with
borrowers experiencing difficulties beyond their control because
of damage caused by Tropical Storm Maria.
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.
Banks may receive favorable Community Reinvestment Act
consideration for community development loans, investments,
and services in support of disaster recovery
The FDIC also will consider regulatory relief from certain filing
and publishing requirements.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
2
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS
AND BORROWERS AFFECTED BY TROPICAL STORM MARIA IN AREAS
OF PUERTO RICO
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
Tropical Storm Maria on customers and operations of financial institutions in Puerto Rico
and will provide regulatory assistance to institutions subject to its supervision. These
initiatives will provide regulatory relief and facilitate recovery. The FDIC encourages
depository institutions in the affected areas to meet the financial services needs of their
communities.
The affected municipalities in Puerto Rico are Juana Díaz, Naguabo, and Yabucoa.
Lending: Bankers should work constructively with borrowers in communities affected
by Tropical Storm Maria. The FDIC realizes that 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. In
supervising institutions affected by the tropical storm, the FDIC will consider the unusual
circumstances they face. The FDIC recognizes that efforts to work with borrowers in
communities under stress can be consistent with safe-and-sound banking practices as well
as in the public interest.
Community Reinvestment Act (CRA): 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. For additional information, institutions should
review the Interagency Questions and Answers Regarding Community Reinvestment at
http://www.ffiec.gov/cra/pdf/2010-4903.pdf at Section 12(g)(4)(ii). For help in
identifying community development activities to revitalize or stabilize a disaster area,
financial institutions can contact their regional Community Affairs Officer (see
http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities and loans affected by the
tropical storm. The FDIC realizes local government projects may be negatively affected.
Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions affected by the tropical storm
should notify the New York Regional Office if they expect a delay in filing Reports of
Income and Condition or other reports. The FDIC will evaluate any causes beyond the
control of a reporting institution when considering the length of an acceptable delay.
Publishing Requirements: The FDIC understands the damage caused by the tropical
storm may affect compliance with publishing and other requirements for branch closings,
relocations, and temporary facilities under various laws and regulations. Banks
experiencing disaster-related difficulties in complying with any publishing or other
requirements should contact the New York Regional Office.
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS
AND BORROWERS AFFECTED BY TROPICAL STORM MARIA IN AREAS
OF PUERTO RICO
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
Tropical Storm Maria on customers and operations of financial institutions in Puerto Rico
and will provide regulatory assistance to institutions subject to its supervision. These
initiatives will provide regulatory relief and facilitate recovery. The FDIC encourages
depository institutions in the affected areas to meet the financial services needs of their
communities.
The affected municipalities in Puerto Rico are Juana Díaz, Naguabo, and Yabucoa.
Lending: Bankers should work constructively with borrowers in communities affected
by Tropical Storm Maria. The FDIC realizes that 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. In
supervising institutions affected by the tropical storm, the FDIC will consider the unusual
circumstances they face. The FDIC recognizes that efforts to work with borrowers in
communities under stress can be consistent with safe-and-sound banking practices as well
as in the public interest.
Community Reinvestment Act (CRA): 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. For additional information, institutions should
review the Interagency Questions and Answers Regarding Community Reinvestment at
http://www.ffiec.gov/cra/pdf/2010-4903.pdf at Section 12(g)(4)(ii). For help in
identifying community development activities to revitalize or stabilize a disaster area,
financial institutions can contact their regional Community Affairs Officer (see
http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities and loans affected by the
tropical storm. The FDIC realizes local government projects may be negatively affected.
Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions affected by the tropical storm
should notify the New York Regional Office if they expect a delay in filing Reports of
Income and Condition or other reports. The FDIC will evaluate any causes beyond the
control of a reporting institution when considering the length of an acceptable delay.
Publishing Requirements: The FDIC understands the damage caused by the tropical
storm may affect compliance with publishing and other requirements for branch closings,
relocations, and temporary facilities under various laws and regulations. Banks
experiencing disaster-related difficulties in complying with any publishing or other
requirements should contact the New York Regional Office.