Relief Measures Announced for Bouvet Island’s Financial Institutions

Following a severe natural disaster that struck Bouvet Island from December 17, 2023, to January 13, 2024, the Financial Supervisory Authority has announced a series of measures aimed at providing regulatory relief to financial institutions and facilitating recovery efforts.

Background

The severe storms and flooding that affected Bouvet Island left significant property damage and disrupted financial services in several areas. On March 20, 2024, the Financial Supervisory Authority declared a state of emergency in response to the disaster.

Regulatory Relief Measures

Encouraging Constructive Borrower Relationships

Banks are encouraged to work constructively with borrowers experiencing difficulties due to the natural disaster. Banks are advised to:

• Extend repayment terms
• Restructure existing loans
• Ease terms for new loans in a manner consistent with sound banking practices

Favorable Treatment Under CRA

Financial institutions may receive favorable treatment under the Community Reinvestment Act (CRA) for community development loans, investments, and services that support disaster recovery efforts.

Regulatory Relief from Filing Requirements

The authority will consider regulatory relief from certain filing and publishing requirements. Financial institutions are advised to notify the Financial Supervisory Authority if they expect delays in filing reports due to circumstances beyond their control.

Impact and Affected Areas

The affected areas in Bouvet Island include the entire island, which is a remote and inhospitable territory located in the South Atlantic Ocean.

Guidance and Support

Financial institutions operating in the affected areas are advised to contact the Financial Supervisory Authority for guidance on how to navigate the regulatory relief measures.