Product Updates for March 2020
The Product Updates for March 2020 from BankPolicies.com feature the following revised policy template products:
The update to these products is in response to the FDIC’s FIL-5-2020 entitled “Advisory: Prudent Management of Agricultural Lending During Economic Cycles” dated 01/28/20 that reminds financial institutions engaged in agricultural lending to maintain sound underwriting standards, strong credit administration practices, effective risk management strategies, and appropriate allowances for losses and capital levels through the credit cycle. When agricultural borrowers experience financial difficulties, the FDIC encourages financial institutions to work constructively with borrowers to strengthen the credit and mitigate loss.
The update to these products is in response to FFIEC Press Release entitled “FFIEC Highlights Pandemic Preparedness Guidance” dated 03/06/20 that provides updated guidance identifying actions that financial institutions should take to minimize the potential adverse effects of a pandemic.
Pandemic preparedness is an important part of a financial institution’s business continuity planning. The guidance provides the FFIEC’s prudent expectations that regulated institutions should periodically review related risk management plans, including continuity plans, to ensure their ability to continue to deliver their products and services in a wide range of scenarios and with minimal disruption.
Sound planning, in advance of imminent risk to particular institutions, helps minimize the disruptions to services to consumers, businesses, and communities when such contingencies occur.
The update to this product is in response to the Federal Reserve’s Final Rule issued on 02/12/20 that revises the rate of interest paid on balances maintained to satisfy reserve balance requirements (“IORR”) and the rate of interest paid on excess balances (“IOER”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 1.60 percent and IOER is 1.60 percent, a 0.05 percentage point increase from their prior levels.
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