COVID-19 and Your Financial Institution
The current situation our nation faces is unprecedented and something no one alive has seen in their lifetime. Considering that, it’s important for financial institutions to understand that the new coronavirus, COVID-19, is a very serious matter from a health standpoint foremost, but also from a financial standpoint as Americans lose work, businesses are shuttered or limited and most people, by order of the government or by their own good sense, stay at home over the next few weeks.
You are probably well aware that this virus has affected the entire world and that most governments, including U.S. local governments and the U.S. federal government, are restricting travel, business and more in an effort to limit the spread of the virus and stave off an unmanageable influx of patients to hospitals. This has put a serious strain on the financial industry in many ways and some financial institutions are likely feeling the pressure much more acutely.
The federal financial regulatory agencies that govern banking laws in the U.S. have released a statement encouraging all financial institutions to work with customers and borrowers as much as possible, particularly by granting loan modifications in a prudent and proactive manner. These federal regulators are working with institutions to ease some of the strain as much as possible with careful changes to some regulations and reporting requirements, keeping up with this changing situation as much as possible.
The National Credit Union Association is also making urgent needs grants available to low-income credit unions that may be particularly struggling at the moment. The grants give these institutions up to $7,500 to buy vital equipment used to service customers, consulting services to aid affected businesses and marketing materials to reassure credit union members.
As this situation develops, there may be more changes to regulations meaning it would be prudent for institutions to keep abreast of developments.
It’s also a good idea to limit risk to yourself, institution employees and customers by being careful, limiting exposure and following the CDC’s guidance for how to handle this situation at work and properly clean and disinfect your institution.
The Edcomm team is weathering this storm with you and are here to help you keep abreast with the best way to handle this situation. Keep an eye on our blog for the latest information and contact us if you have questions about compliance training for your institution.