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Financial Services Law Insights and Observations

FDIC announces Hawaii disaster relief

Bank Regulatory Federal Issues Consumer Finance FDIC Disaster Relief Hawaii

On August 11, the FDIC issued FIL-41-2023 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Hawaii affected by wildfires from August 8 and continuing. The FDIC acknowledged the unusual circumstances faced by affected institutions and encouraged those institutions to work with impacted borrowers to, among other things: (i) extend repayment terms; (ii) restructure existing loans; or (iii) ease terms for new loans, provided the measures are done “in a manner consistent with sound banking practices.” Additionally, the FDIC noted that institutions “may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.” The FDIC will also consider regulatory relief from certain filing and publishing requirements and instructed institutions to contact the San Francisco Regional Office if they expect a delay in making filings or are experiencing difficulties in complying with publishing or other requirements.