Federal financial regulators have issued two statements to institutions regarding their handling of situations regarding the coronavirus.
In the first, the agencies updated guidance identifying actions institutions should take to minimize potentially adverse effects of a pandemic.
“Pandemic preparedness is an important part of a financial institution’s business continuity planning,” the regulators stated. “The guidance provides the council’s prudent expectations that regulated institutions should periodically review related risk management plans, including continuity plans, to ensure their ability to continue to deliver their products and services in a wide range of scenarios and with minimal disruption.”
Regulators said sound planning in advance of imminent risk would help minimize disruptions to services to consumers, businesses and communities when contingencies occurred.
In addition, the regulators specifically addressed customers and members affected by coronavirus.
“The agencies recognize the potential impact of the coronavirus on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision,” the agencies stated.
Regulators urged institutions to work with borrowers and customers in affected communities, saying, “prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.”
Regulators also noted the potential effect of the virus on staffing at institutions.
“In cases in which operational challenges persist, regulators will expedite, as appropriate, any request to provide more convenient availability of services in affected communities,” the agencies stated. “The regulators also will work with affected financial institutions in scheduling examinations or inspections to minimize disruption and burden.”