ABSTRACT

CARES Act (P.L. 116-136): Provisions Designed to Help Banks and Credit Unions [Updated September 18, 2020]   [open pdf - 648KB]

From the Document: "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."

Report Number:
CRS Insight, IN11318
Author:
Publisher:
Date:
2020-09-18
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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