The Independent Community Bankers of America (ICBA) is urging federal regulators to provide regulatory flexibility to help community banks restore services in hurricane-affected areas more quickly in communities impacted by Hurricane Harvey.
“Community bankers, as in past natural disasters, stand ready to assist their customers, including thousands of small businesses, stabilize and rebound financially as quickly as possible from the still-unfolding damage caused by the hurricane and attendant historical flooding,” ICBA President and CEO Camden Fine said.
In a letter to Treasury, federal banking regulators and the Consumer Financial Protection Bureau, ICBA officials outlined several recommendations designed to ensure the continued flow of cash and payments throughout the hurricane-affected communities. They also urged the agencies to work with community banks to meet the challenges.
Specifically, ICBA officials asked for assistance with maintaining public confidence in the safety and soundness of FDIC-insured institutions, assuring the liquidity and cash needs of community banks can be met, allowing for special clearing and settlement arrangements as needed, waiving certain compliance requirements to expedite provision of services to customers, and exercising regulatory flexibility to address safety and soundness concerns for past due and otherwise classified loans, and capital and corrective action requirements.
“With appropriate governmental action and support, community banks should be well-positioned to spur the recovery of their communities,” Fine said.