FDIC: Regulatory Relief Guidance for Financial Institution in Areas of Hawaii Affected by Volcanic Eruptions and Earthquakes


The FDIC announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Hawaii affected by volcanic eruption and earthquakes.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.


  • Volcanic eruption and earthquakes caused significant property damage in areas of Hawaii from May 3, 2018, and is continuing.
  • A federal disaster for selected areas in Hawaii was declared on May 11, 2018, and subsequently amended on June 14, 2018, to make federal assistance available to eligible individuals. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov/.
  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the volcanic eruption and earthquakes.
  • Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
  • Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Continuation of FIL-33-2018

Printable Format:

FIL-33-2018 – PDF (PDF Help)

Suggested Distribution:

  • FDIC-Supervised Banks (Commercial and Savings) in Hawaii

Suggested Routing:

  • Chief Executive Officer
  • Compliance Officer
  • Chief Lending Officer
  • Lending
  • Investments
  • Publishing Requirements
  • Consumer Laws
  • Community Reinvestment Act


  • Assistant Regional Director Louis Cheng at (415) 808-8263 or LCheng@fdic.gov


FDIC Financial Institution Letters (FILs) may be accessed from the FDIC’s website at www.fdic.gov/news/news/financial/2018/.

To receive FILs electronically, please visit www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC’s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

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