FDIC

The central bank made two more moves to keep credit flowing; the Housing Policy Council plan would halt mortgage payments during the COVID-19 crisis.

The Federal Deposit Insurance Corporation (the “FDIC”) issued a statement on March 13, 2020, encouraging financial institutions to take prudent steps to assist customers and communities affected by the Coronavirus Disease 2019 (“COVID-19”).

The official announcement can be found here.

There are several forbearance measures the agencies can take now to keep banks from failing in a downturn triggered by the coronavirus.

The OCC and FDIC said banks should consider waiving fees, be flexible with loan repayments and that they would not be penalized if they close branches for precautionary reasons.

William Isaac and Howard Milstein plan to provide advice to U.S. and foreign banks of all sizes.