Overview
Banking regulators issued a joint statement that encourages financial institutions to provide relief for borrowers affected by the coronavirus and provides guidance developed in consultation with the staff of the Financial Accounting Standard Board that short-term loan modifications made to help borrowers that are current manage their liquidity needs (e.g., deferrals of payments) should not be considered troubled debt restructurings. The statement also says these modified loans do not have to be designated as past due or nonaccrual.
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