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OCC BULLETIN 2006-5
To: Chief Executive Officers of All National Banks, Federal Branches and Agencies, Department and Division Heads, and All Examining Personnel

Description: Guidance to Examiners

The guidance attached to this bulletin continues to apply to federal savings associations.

 


Purpose

This issuance transmits guidance that the Office of the Comptroller of the Currency (OCC), the other federal financial institutions regulatory agencies1 and the state supervisory authorities in Alabama, Louisiana, and Mississippi (collectively, the agencies) have issued to their respective examiners regarding supervisory practices to be followed in assessing the financial condition of financial institutions directly affected by Hurricane Katrina.

Summary

Hurricane Katrina had a devastating effect on the U.S. Gulf Coast region that will continue to affect the business activities of the financial institutions serving this area for the foreseeable future. The agencies are committed to working with affected institutions as those institutions work to assist their customers and communities. It is critical, however, that the agencies are aware of the true condition of each affected financial institution. Therefore, the agencies are instructing examiners to follow the definitions embodied in the Uniform Financial Institutions Rating System when evaluating and assigning an institution's CAMELS ratings.

The OCC encourages any national bank whose operations or condition was adversely affected by the hurricane to contact and discuss its remediation plans with its examiner-in-charge. In determining what supervisory action, if any, may be required for an institution whose condition has been adversely affected by the hurricane, examiners will consider management's capabilities and efforts in resolving the institution's specific issues. Formal or informal administrative action that ordinarily would be considered for similarly rated institutions may not be necessary, provided that prudent planning and policies are in place, and that management is pursuing realistic resolution of the problems facing the institution.

For additional information or assistance related to Hurricane Katrina, please contact your supervisory office or Fred Finke at (202) 874-4468.

Emory W. Rushton
Senior Deputy Comptroller and Chief National Bank Examiner

Related Links


 1 The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration.