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1 1 (September 18, 2020)

handle is hein.crs/govdbwl0001 and id is 1 raw text is: Researh Sevice The CARES Act (P.L. 116-136): Provisions Designed to Help Banks and Credit Unions Updated September 18, 2020 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 banking to the economy, federal depository regulators have implemented safety and soundness regulations, including lending, capital, and liquidity rules. Regulators also have the authority to supervise banks, which includes requiring banks 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 exists at the National Credit Union Administration (NCUA). This Insight examines those sections. For descriptions of all sections of Title IV of the CARES Act, see CRS Report R46301, Title IV Provisions of the CARES Act (PL. 116-136), coordinated by Andrew P. Scott. Policy makers have implemented other measures addressing concerns related to financial institutions. The CARES Act expands the Federal Deposit Insurance Corporation's (FDIC's) authority to guarantee bank liabilities, which is the subject of CRS Insight IN11307, The CARESAct (PL. 116-136) Section 4008: FDIC Bank Debt Guarantee Authority, by David W. Perkins. CRS Insight IN11278, Bank and Credit Union Regulators 'Response to COVID-19, describes the actions taken by depository regulators under exiting authority to address issues in the banking industry. CRS Insight IN 11259, Federal Reserve: Recent Actions 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 approve certain loans for an exception to the limit. Section 4011 grants the OCC broad authority to exempt loans when it is in the public interest. This authority terminates the earlier of (1) the termination Congressional Research Service https://crsreports.congress.gov IN11318 CRS NStGHT Prepaimed for Mernbei-s and Committees 4 o. C- --q .. . . . . . . . ...-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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