Calls For Easing Guidelines, Extending Payments
March 18, 2020
The Connecticut Department of Banking is recommending state-chartered banks and credit unions work with all borrowers impacted by Covid-19. The department recommends easing credit terms for new loans, among other steps.
Jorge Perez, banking commissioner, said, “The department recognizes that there are unique challenges associated with Covid-19 that could have an impact on both financial institutions and their customers. During this period, financial institutions are encouraged to work with all borrowers whose ability to make loan repayments at this time may be impacted.”
The department is suggesting, among other steps, waiving overdraft fees, allowing more money market withdrawals, waiving CD early withdrawal penalties, and allowing borrowers to extend payment due dates or defer some payments.
Financial institutions were challenged by the department to spread the word about steps they are taking. Perez said not doing so would limit the effectiveness of any new measures.
Read more about CT’s coronavirus banking policies.
Willingness To Appreciate Nuances Will Serve Customers Best
Current Bank President Sean Gray named Acting CEO