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Financial Services Law Insights and Observations

New York issues executive order relating to financial institutions

State Issues Covid-19 New York NYDFS

State Issues

On March 21, the New York governor issued an executive order stating that it is an “unsafe and unsound business practice” for banks to fail to “grant a forbearance to any person or business who has a financial hardship as a result of the COVID-19 pandemic for a period of 90 days.”  The Order directs the New York Department of Financial Services (NYDFS) to promulgate emergency regulations to mandate that applications for forbearance be made widely available for consumers. Additionally, the order empowers the NYDFS to promulgate emergency regulations to direct that, solely for the period of the Covid-19 emergency, fees for the use of automated teller machines (ATMs), overdraft fees and credit card late fees, may be restricted or modified in accordance with the Superintendent’s regulation of licensed or regulated entities, “taking into account the financial impact on the New York consumer, the safety and soundness of the licensed or regulated entity, and any applicable federal requirements.” 

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