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1 1 (April 7, 2020)

handle is hein.crs/govcuyu0001 and id is 1 raw text is: Researh Sevice The CARES Act (P.L. 116-136): Provisions Designed to Help Banks and Credit Unions April 7, 2020 Individuals and businesses have significantly reduced economic activity in response to the coronavirus (COVID-1 9) outbreak, potentially inflicting unanticipated losses on banks and credit unions and possibly putting them in financial distress. Because these institutions are vital to the functioning of the economy, the government has created safety nets to prevent them from failing and to protect depositors. To reduce the likelihood that these safety nets need to be used, the depository regulators have implemented safety and soundness regulations, which include rules related to banks' lending, capital, and liquidity. Regulators also have the authority to supervise banks, which includes the periodic collection and examination of banks 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, 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 IVProvisions of the CARES Act (PL. 116-136), coordinated by Andrew P. Scott. In addition to regulatory relief, other measures to shore up liquidity and capital reserves at financial institutions have been put forth. The CARES Act expands the Federal Deposit Insurance Corporation's (FDIC's) authority to guarantee bank liabilities, which is the subject of CRS Insight Ni 1307, The CARES Act (PL. 116-136) Section 4008: FDIC Bank Debt Guarantee Authorityhttps: /icrsreports congress.gov/iproduct/pdf/IN'TN 1 307. CRS Insight Ni 1278, Banking Regulators 'Response to COVID-19 describes the actions taken by depository regulators under exiting authority to address issues in the banking industry. CRS Insight N 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. Congressional Research Service https://crsreports.congress.gov IN11318 CRS NStGHT Prepaimed for Mernbei-s and Committees 4 o. C- --q .. . . . . . . . ...----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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