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US banking regulators urge banks to help borrowers struggling due to coronavirus

Thursday 26 March 2020 14:29 CET | News

US banking regulators have announced they would not penalize banks that help borrowers struggling to repay loans due to the coronavirus outbreak, and vowed to provide “appropriate regulatory assistance” to affected institutions.

The statement from the Federal Reserve and others urged banks to work constructively with customers in affected areas, and urged institutions to continue to meet their financial needs. Prudent efforts to provide loan relief would not be criticized by bank examiners, they said. 

The announcement is aimed at making sure banks feel comfortable to work out terms with borrowers temporarily hindered from paying back loans or facing other hardship due to the coronavirus impact.

Some analysts have begun warning that steps taken to curb the virus, such as cancelling public gatherings and reducing travel, could have economic consequences downstream, as missed paychecks and reduced earnings hit home.

 


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Keywords: US, banking, regulators, banks, borrowers, coronavirus, loans
Categories: Banking & Fintech
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Countries: United States
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