US regulators offer more guidance on loan restructurings
US banks will not be required to categorise any “prudent” loan modifications to help coronavirus-affected borrowers as troubled debt restructurings, the Federal Reserve and counterpart regulators said on March 22.
The regulators said any short-term loan modifications can include payment deferrals, fee waivers, repayment extensions and other insignificant payment delays.
Any restructured loans will remain eligible as collateral in the discount window, the Fed said.
“The agencies view prudent
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