WASHINGTON
--The Office of the Comptroller of the Currency (OCC) has outlined
measures to assist national banks and their customers affected by Hurricane
Isabel. The OCC regulates national
banks.
The OCC recognizes that the effects of natural disasters on
individuals and businesses are often temporary, and that prudent efforts to
adjust or alter terms on existing loans in areas affected by the disasters and
related problems should not be subject to bank examiner criticism.
The OCC encourages national banks to consider various
alternatives that may include:
- extending the terms of loan
repayments;
- restructuring a borrower’s debt
obligations; and,
- easing credit terms for new loans to
certain borrowers, consistent with prudent banking practice.
The OCC notes that these measures could help borrowers
recover their financial strength and
enable them to be in a better position to repay their
debts. These recovery efforts can
contribute
to the health of the local community and the long-term
interests of the national bank and its
customers.
In addition, the OCC has authorized national banks to close
offices affected by the hurricane
temporarily.
National banks in need of assistance in dealing with
customers affected by the hurricane should
contact the OCC.
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The OCC charters, regulates
and examines approximately 2,200 national banks and 52 federal branches and
agencies of foreign banks in the United States, accounting for 54 percent of
the nation=s banking assets. Its mission is to ensure a safe, sound and competitive national
banking system that supports the citizens, communities and economy of the
United States.