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Joint Press Release
March 22, 2020

Agencies provide additional information to encourage financial
institutions to work with borrowers affected by COVID-19
Board of Governors of the Federal Reserve System
Conference of State Bank Supervisors
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
For release at 6:00 p.m. EDT

The federal financial institution regulatory agencies and the state banking regulators issued an interagency
statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and
providing additional information regarding loan modifications.
The agencies encourage financial institutions to work with borrowers, will not criticize institutions for doing so
in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan
modifications as troubled debt restructurings (TDRs). The joint statement also provides supervisory views on
past-due and nonaccrual regulatory reporting of loan modification programs.
The agencies view prudent loan modification programs offered to financial institution customers affected by
COVID-19 as positive and proactive actions that can manage or mitigate adverse impacts on borrowers, and
lead to improved loan performance and reduced credit risk.
The statement reminds institutions that not all modifications of loan terms result in a TDR.
Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current
prior to any relief are not TDRs. This includes short-term—for example, six months—modifications such as
payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are
The agencies' examiners will exercise judgment in reviewing loan modifications, including TDRs, and will not
automatically adversely risk rate credits that are affected, including those considered TDRs. Regardless of
whether modifications are considered TDRs or are adversely classified, agency examiners will not criticize
prudent efforts to modify terms on existing loans for affected customers.

Interagency Statement (PDF)
SR letter 20-4 / CA letter 20-3, "Supervisory Practices Regarding Financial Institutions Affected by

Media Contacts:
Federal Reserve Board

Eric Kollig
Marisol Garibay
Jim Kurtzke
David Barr
Ben Hardaway
Stephanie Collins


Related Information
Agencies issue revised interagency statement on loan modifications by financial institutions working with
customers affected by the coronavirus (April 7, 2020)

Last Update: March 23, 2020