The state Department of Banking has asked Connecticut’s state-chartered banks and credit unions to provide relief to businesses and residents where possible.
On Tuesday, the state banking commissioner encouraged lending institutions to ease credit terms for new loans, waive overdraft and late-payment fees as well as withdrawal penalties for certificate of deposit accounts.
The department said such actions should be “consistent with safe and sound banking practices.”
“Any modifications to existing loans that are deemed prudent by financial institutions in light of the circumstances will not be subject to regulatory criticism,” state Banking Commissioner Jorge Perez said in a statement.
The agency urged banks and credit unions to be available to answer customer questions and to communicate with servicers and collection agencies in order to inform customers of what accommodations are available.
Perez’s ask comes on the heels of the state giving leniency on its own loan portfolio, including extending Small Business Express loans for 90 days and offering a grace period on making payments, also for 90 days.
