FDIC Announces Regulatory Relief for Financial Institutions in South Dakota Affected by Severe Storm and Flooding

Strategic Insights -

The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps to provide regulatory relief to financial institutions in areas of the Lake Traverse (Sisseton-Wahpeton Oyate) Indian Reservation in South Dakota affected by severe storm and flooding. The FDIC encourages banks to work constructively with borrowers experiencing difficulties beyond their control due to damage in the affected areas, citing that such efforts can be consistent with safe-and-sound banking practices and in the public interest.

Key Takeaways:

  • The FDIC has announced regulatory relief to help financial institutions and facilitate recovery in areas of the Lake Traverse (Sisseton-Wahpeton Oyate) Indian Reservation in South Dakota affected by severe storm and flooding.
  • The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in South Dakota on September 11, 2025.
  • The FDIC encourages banks to work constructively with borrowers experiencing difficulties beyond their control because of damage in the affected areas, and will not criticize prudent efforts to adjust or alter terms on existing loans.
  • Institutions that extend repayment terms, restructure existing loans, or ease terms for new loans in a manner consistent with sound banking practices can contribute to the health of the local community and serve the long-term interests of the lending institution.
  • Institutions may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.
  • Institutions are encouraged to monitor securities and loans of municipalities in affected areas, and take prudent efforts to stabilize such investments.
  • FDIC-supervised institutions in affected areas should notify the Kansas City Regional Office if they expect a delay in filing Reports of Income and Condition or other reports.
  • The FDIC understands the damage in affected areas may affect an institution's ability to comply with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations.

Statistics:

  • The severe storm and flooding caused significant property damage in the area of the Lake Traverse (Sisseton-Wahpeton Oyate) Indian Reservation in South Dakota from June 12, 2025, to June 16, 2025.
  • The FDIC is providing regulatory relief to institutions in areas of the Lake Traverse (Sisseton-Wahpeton Oyate) Indian Reservation in South Dakota affected by severe storm and flooding.
  • The federal disaster declaration for selected areas affected in South Dakota was made on September 11, 2025, by FEMA.

Sources:

  • Federal Deposit Insurance Corporation: SUPERVISORY RELIEF TO HELP FINANCIAL INSTITUTIONS AND FACILITATE RECOVERY FOR THE SISSETON-WAHPETON OYATE OF THE LAKE TRAVERSE RESERVATION IN SOUTH DAKOTA AFFECTED BY SEVERE STORM AND FLOODING
  • Federal Deposit Insurance Corporation: Disaster Page