Troubled Debt Restructurings: Joint Statement on Additional Loan Accommodations Related to COVID-19
August 05, 2020 / Source: OCC
OCC Bulletin 2020-72| August 3, 2020
To Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties
The Federal Financial Institutions Examination Council on behalf of its members1 today issued a joint statement to provide prudent risk management principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the coronavirus disease 2019 (COVID-19) outbreak.
Note for Community Banks
The joint statement applies to community banks.2
The joint statement addresses
- prudent risk management practices that include identifying, measuring, and monitoring the credit risks of loans that receive accommodations.
- well-structured and sustainable accommodations.
- consumer protection considerations.
- accounting and regulatory reporting treatment.
- the role of internal control systems.
Please contact John Court, National Bank Examiner for Retail Credit Risk Policy, at (202) 649-6670.
Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy
1 The Federal Financial Institutions Examination Council comprises the principals of Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and State Liaison Committee.