The Federal Deposit Insurance Corporation has announced supervisory and regulatory relief for FDIC-supervised financial institutions in Louisiana areas hit by Tropical Storm Arthur, with the aim of supporting recovery and maintaining access to banking services. The agency encouraged banks to work constructively with affected borrowers and said it will not criticize prudent efforts to adjust repayment terms, restructure existing loans or ease terms for new loans when those actions are consistent with safe and sound banking practices. The measures apply to institutions in Avoyelles, St. Landry, St. Tammany and Terrebonne Parishes, following a Federal Emergency Management Agency disaster declaration for selected Louisiana areas. Relief includes potential Community Reinvestment Act consideration for qualifying community development loans, investments and services tied to disaster recovery, flexibility on delays in filing Reports of Income and Condition and other reports when disruption is beyond an institution's control, and case-by-case accommodation where storm damage affects compliance with publishing and related requirements for branch closings, relocations and temporary facilities. The FDIC also said institutions should monitor securities and municipal loans in affected areas and take prudent steps to stabilize those investments. The Dallas Regional Office will expedite requests to operate temporary banking facilities for affected institutions. FEMA may add further designated areas after damage assessments are completed.

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