For immediate release

The Federal Reserve Board today announced a series of steps designed to help ease financial stress in areas affected by the flooding in Minnesota, North Dakota, and South Dakota. A supervisory statement adopted by the Board encourages financial institutions to work constructively with borrowers who are experiencing difficulty due to the flooding. The statement says that banks may find it appropriate to ease credit terms to help new borrowers restore their financial strength consistent with prudent banking practices, and to restructure debt or extend repayment terms to existing borrowers. The Board is also considering the need to waive its appraisal regulation for real estate related transactions affected by the flooding. The purpose of the waiver would be to assist disaster-affected regulated institutions encountering difficulties in obtaining appraisals for transactions that would aid reconstruction in the disaster affected areas. For additional information, contact the Federal Reserve Bank of Minneapolis (612) 340-2279.

1997 Banking and consumer regulatory policy | 1997 Other announcements