Governor Kay Ivey on Tuesday, in cooperation with Alabama Superintendent of Banking Mike Hill, highlighted measures taken by financial regulators to protect the financial system within the state.
The Alabama Banking Department, which oversees operations of Yellowhammer State banks, has partnered with its regulated financial institutions to ensure they are as prepared as possible for situations like the coronavirus (COVID-19) pandemic.
A release from Ivey’s office explained that the objective of financial regulators and the state and national banks has been to ensure that the financial needs of our citizens are met without interruption or added hardships.
“I am confident in the preparations and plans that our financial institutions have put in place,” stated Ivey.
“I also have significant confidence in the underlying health of our financial services industry to weather the economic storms that, while of limited duration, could arise from the impact of COVID-19. I am assured that our banking institutions have an ability to continue providing services including providing funds needed by their customers,” she added.
Alabama banks are required to have business continuity plans in place to address emergency situations. In addition to state and federal bank regulators routinely reviewing banks’ plans for adequacy, the banks themselves routinely update and rehearse the implementation of these plans. In emphasizing this planning, our banks and their regulators are focused on ensuring continued, uninterrupted access to needed financial services, the release from the governor’s office advised.
“As to the overall health of our banks, strong aggregate earnings and capital have Alabama banks well positioned to respond to any adverse economic events or other contingencies,” Hill commented. “Along with maintaining strong financial performance, State-chartered banks are also prepared for issues arising from events such as hurricanes, tornadoes, cybersecurity threats, or as we currently face, a pandemic.”
Alabama banks have successfully provided financial services to their communities during previous events such as Hurricane Katrina and tornado outbreaks.
The state’s banking industry, through its formation of the Alabama Recovery Coalition for the Financial Sector (ARCFS), has been at the forefront of preparedness planning.
ARCFS is managed by the Alabama Bankers Association and works closely with the Alabama Emergency Management Agency as well as the Alabama Banking Department and federal bank regulators. The ARCFS has been recognized as a model for other states to create similar business continuity planning organizations. ARCFS encompasses the majority of Alabama banks, both small and large, across the state.
For updated coronavirus information, Alabamians should continue to monitor the Alabama Department of Public Health’s website here and the CDC’s website here.
Additionally, major cities in Alabama such as Montgomery, Birmingham, Huntsville, Mobile, Tuscaloosa, Auburn and Dothan have created landing pages with their latest news on the coronavirus.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
