On March 30, the Illinois Department of Financial Regulation, Division of Banking and Division of Financial Institutions, issued guidance to Illinois banks and credit unions regarding support for consumers and businesses impacted by Covid-19. Illinois banks and credit unions are encouraged to use their capital and liquidity buffers as they respond to financial challenges resulting from the Covid-19 pandemic, such as to lend and undertake other supportive actions in a safe and sound manner. Illinois banks and credit unions also are encouraged to: (i) provide affected borrowers with payment accommodations to work through short-term setbacks; (ii) respond to borrowers from industry sectors particularly vulnerable to the volatility of the current economic environment; and (iii) work with small businesses, hourly workers, and independent contractors that have less financial flexibility to weather the economic decline.

The guidance further encourages Illinois banks and credit unions to assist affected borrowers by, among other things, waiving certain fees (e.g., ATM fees, overdraft fees, late fees), increasing ATM daily cash withdrawal limits, increasing credit card limits for creditworthy borrowers, and providing new loans on favorable terms. Prudent efforts to help consumers and businesses will not be subject to examiner criticism.