Financial Institution Risk Assessment in Northern Mariana Islands After Super Typhoon Yutu

The Federal Deposit Insurance Corporation (FDIC) has announced a series of measures aimed at providing regulatory relief to financial institutions and facilitating recovery in areas affected by Super Typhoon Yutu in the Northern Mariana Islands.

Regulatory Relief Measures

The FDIC is urging banks to work constructively with borrowers experiencing difficulties due to the severe weather, and has extended regulatory relief from certain filing and publishing requirements. The affected areas include Rota, Saipan, Tinian, and the Northern Islands municipalities.

Lending Guidance

• The FDIC encourages bankers to work with borrowers in communities affected by the severe weather, recognizing that efforts to adjust or alter loan terms can be consistent with safe-and-sound banking practices and in the public interest.
• Bankers are urged to consider community development loans, investments, or services that revitalize or stabilize federally designated disaster areas.

Investments

• Bankers should monitor municipal securities and loans affected by the severe weather, and make prudent efforts to stabilize such investments.

Reporting Requirements

• FDIC-supervised institutions affected by the severe weather should notify the San Francisco Regional Office if they expect a delay in filing reports of income and condition or other reports.

Publishing Requirements

• The FDIC understands that damage caused by the severe weather 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 should contact the San Francisco Regional Office.

Consumer Laws

• For consumers’ principal dwelling-secured loans, Regulation Z provides an option to waive or modify the three-day rescission period when a “bona fide personal financial emergency” exists.

Temporary Banking Facilities

• The San Francisco Regional Office will expedite any request to operate temporary banking facilities by an institution whose offices have been damaged or that desires to provide more convenient availability of services to those affected by severe weather.

Quotes from FDIC Officials

“The FDIC recognizes the serious impact of Super Typhoon Yutu on customers and operations of financial institutions in the Northern Mariana Islands,” said Louis Cheng, Assistant Regional Director. “We are committed to providing regulatory assistance to institutions subject to our supervision.”