Financial Crime World

Banks in Northern Mariana Islands Receive Regulatory Relief After Typhoon Soudelor

The Federal Deposit Insurance Corporation (FDIC) has announced a series of measures to provide regulatory relief to financial institutions and facilitate recovery in areas affected by Typhoon Soudelor in the Commonwealth of Northern Mariana Islands.

Background

Typhoon Soudelor caused significant property damage on the island of Saipan from August 1 to August 3, 2015. A federal disaster declaration was made on August 6, 2015, with additional designations possible after damage assessments are completed.

Regulatory Relief Measures

The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties due to the typhoon. This can include:

  • Extending repayment terms
  • Restructuring existing loans
  • Easing terms for new loans (provided it is done in a manner consistent with sound banking practices)

Banks may also receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services that support disaster recovery efforts. The FDIC will consider regulatory relief from certain filing and publishing requirements, including:

  • Notification of delays in reporting income and condition or other reports

Additional Measures

The agency is also reminding bankers to:

  • Monitor municipal securities and loans affected by the typhoon and take prudent efforts to stabilize such investments
  • Set up temporary banking facilities for institutions whose offices have been damaged or that desire to provide more convenient availability of services to those affected by the typhoon

Consumer Support

The FDIC is also providing support for consumer loans, allowing consumers to:

  • Waive or modify the three-day rescission period in cases of “bona fide personal financial emergency”

For further information, banks can contact Acting Deputy Regional Director Louis Cheng at (415) 808-8263 or lcheng@fdic.gov. The FDIC’s Financial Institution Letters (FILs) are available on its website at www.fdic.gov.