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1 1 (January 11, 2021)

handle is hein.crs/govebud0001 and id is 1 raw text is: h Congressional Research Service The CARES Act (P.L. 116-136): Provisions Designed to Help Banks and Credit Unions Updated January 11, 2021 The economic effects of the coronavirus (COVID-19) pandemic may cause numerous borrowers to miss loan repayments, potentially leading to distress at banks and credit unions. Because of the importance of those institutions to the economy, regulators have implemented safety and soundness regulations, including lending, capital, and liquidity rules. Regulators also require the institutions to report financial information. As part of Congress's response to COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) includes four sections-4011, 4012, 4013, and 4014-that temporarily relax some of the regulations banks face. Section 4016 expands access to the Central Liquidity Facility (CLF), which is a liquidity facility for credit unions that is administered by at the National Credit Union Administration. This Insight examines those sections. For descriptions of all sections of Title IV of the CARES Act, see CRS Report R46301, Title IVProvisions of the CARESAct (PL. 116-136). Sections 540 and 541 of Division N of the Consolidated Appropriations Act, 2021(P.L. 116-260) extended the expiration of Sections 4013, 4014, and 4016, as discussed in CRS Insight IN11568, CARESActBankand Credit Union Relief: Expirations and Extensions Under PL. 116-260. Policymakers have implemented other measures addressing concerns related to financial institutions. The CARES Act expands the Federal Deposit Insurance Corporation's authority to guarantee bank liabilities, as described in CRS Insight IN11307, The CARESAct (PL. 116-136) Section 4008: FDIC BankDebt Guarantee Authority. CRS Insight IN11278, Bank and Credit Union Regulators'Response to COVID-19, describes the actions taken by depository regulators under existing authority to address issues in the banking industry. CRS Insight IN11259, Federal Reserve: RecentActions in Response to COVID-19, discusses the programs the Federal Reserve has set up to provide liquidity to financial markets. OCC Lending Limit Waiver National banks are subject to limits on how much they can lend to a single borrower relative to their capital and their portfolio characteristics, unless the loan qualifies for an exception enumerated by statute. The Office of the Comptroller of the Currency (OCC) generally has relatively narrow authority to Congressional Research Service https://crsreports.congress.gov IN11318 CRS INSIGHT Prepared for Membersand Committeesof Congress

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