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FDIC FIL on ag lending management

The FDIC has issued FIL-5-2020 concerning prudent management of agricultural lending during economic cycles. The advisory reminds financial institutions engaged in agricultural lending to maintain sound underwriting standards, strong credit administration practices, effective risk management strategies, and appropriate allowances for losses and capital levels through the credit cycle. When agricultural borrowers experience financial difficulties, the FDIC encourages financial institutions to work constructively with borrowers to strengthen the credit and mitigate loss.

This Financial Institution Letter rescinds and replaces FIL-39-2014, "Prudent Management of Agricultural Credits Through Economic Cycles," dated July 16, 2014.

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