Federal Deposit Insurance Corporation offers regulatory relief for Hawaii institutions affected by low weather systems

The Federal Deposit Insurance Corporation has announced supervisory and regulatory relief measures for FDIC-supervised institutions affected by low weather systems in Hawaii, following significant damage from March 10, 2026 to March 24, 2026. The measures are intended to support recovery in the affected areas and include encouragement for banks to work constructively with borrowers facing disaster-related difficulties, with the FDIC stating it will not criticize prudent loan term adjustments made in line with safe-and-sound banking practices. The affected areas identified are Hawaii, Honolulu, and Maui Counties, after the Federal Emergency Management Agency declared a federal disaster for selected areas on April 7, 2026. Institutions may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services that help revitalize or stabilize designated disaster areas. The FDIC also said it will consider relief from certain filing and publishing requirements, evaluate disaster-related causes for reporting delays, and expedite requests to operate temporary banking facilities, with telephone notice generally sufficient at first. The notice also points to existing Regulation Z flexibility for principal dwelling-secured loans where a bona fide personal financial emergency exists, and encourages institutions to monitor and prudently stabilize securities and loans of municipalities in affected areas.