Regulatory Alerts2025-06-02 | FIL-16-2025Supervisory Relief to Help Financial Institutions and Facilitate Recovery in Areas of Kentucky Affected by Severe Storms, Straight-line Winds, and Tornadoes
The Federal Deposit Insurance Corporation (FDIC) issued this supervisory relief to assist FDIC-supervised financial institutions in Kentucky’s Caldwell, Laurel, Pulaski, Russell, Trigg, and Union Counties following severe storms, straight-line winds, and tornadoes in May 2025. The agency permits prudent loan term adjustments and restructuring without criticism, grants favorable Community Reinvestment Act consideration for related community development activities, and provides flexibility in filing, publishing, and temporary banking facility requirements. Institutions are encouraged to collaborate constructively with affected borrowers, utilize the Regulation Z rescission waiver for principal dwellings during emergencies, and notify the Chicago Regional Office of reporting delays or facility needs to ensure continued operational stability.