Treasury Secretary Nicholas F. Brady plans to meet on Wednesday with regulators and Florida bankers in an effort to maintain an adequate flow of credit after Hurricane Andrew.
Bank, thrift, and credit union executives from South Florida have been invited to the meeting at the Federal Reserve Bank of Atlanta's Miami branch. Also represented will be all the state and federal agencies that oversee those institutions.
"The primary purpose of this visit is to coordinate efforts," a spokeswoman for Mr. Brady said on Friday.
"Our hope is the regulators will come away from this with some clear guidance on what sort of forbearance they will give the banks on their next examinations," said John Milstead, executive vice president of the Florida Bankers Association.
Robert V. Ahrens, district administrator in Atlanta for the Office of the Comptroller of the Currency, said he did not expect regulatory initiatives to be announced. He said he understood the purpose was to listen and provide policy guidance.
"We're trying to figure out the best way to aid the citizens in the affected area without obviously impacting the safety and soundness of the institutions," said Doug Johnson, assistant director of the state banking division.
Soon after the hurricane hit on Aug. 24, the major banks voluntarily extended repayment schedules on current loans. Federal regulators subsequently blessed that policy.
The interagency regulatory statement also said it was appropriate to ease terms on new loans, as several banks had done. The agencies indicated they would take "the unusual circumstances" into account if loan delinquencies increased.