NR 2001-19
FOR IMMEDIATE RELEASE			
Contact:  Robert M. Garsson (202) 874-5770
February 27, 2001				    

OCC Publishes Guide to Aid in Identification of Problem Banks

WASHINGTON -- The Office of the Comptroller of the Currency this week published a 
guide intended to help examiners identify problem banks and assist in their 
rehabilitation or resolution.

"One of the most challenging and important aspects of a bank examiner’s job is 
knowing how to read and react, in a balanced and effective way, to symptoms 
of problems that may not yet be obvious to bank directors and management," 
said Comptroller of the Currency John D. Hawke, Jr., in a letter accompanying 
the booklet.

"Yet this should always be our objective -- prompting early remedial action 
so that a bank’s ability to serve its customers is not adversely affected,
" Mr. Hawke added.

The guide, while written for examiners, is being published by the OCC 
because the material contained  in the 156-page  book will also be useful 
to bankers and others with an interest in the banking system.

An Examiner's Guide to Problem Bank Identification, Rehabilitation, 
and Resolution contains information on a variety of topics important 
to examiners, including material on:

 -  Problem bank identification, including "red flags," such as aggressive 
growth strategies, that suggest the need for heightened scrutiny.

 - Rehabilitation of problem banks.

 - Resolution of institutions with a high likelihood of failure.

 - Bank accounting, including information on asset valuation, troubled 
debt restructuring, the appropriate treatment for real estate owned by banks; 
sale and leasebacks, and loss carryforwards.

 - Problems involving large bank companies. 

"The OCC is committed to bank supervision policies and procedures that 
support prompt detection and mitigation of problems before they affect bank 
viability," Mr. Hawke said.  "In this way, banks will have the maximum 
opportunity to resolve their own problems."

An Examiner's Guide to Problem Bank Identification, Rehabilitation, and 
Resolution is available on the OCC Web site at 
http://www.occ.treas.gov/prbbnkgd.pdf.  Hard copies my be ordered using 
the form available on the OCC Web site at http://www.occ.treas.gov/publsta.htm 
or by sending a written request and a check for $15 payable to the Comptroller 
of the Currency to: 
	
	Comptroller of the Currency
	PO Box 70004
	Chicago, IL 60673-0004


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The OCC charters, regulates and examines approximately 2,200 national banks and 
56 federal branches of foreign banks in the U.S., accounting for more than 55 
percent of the nation’s banking assets. Its mission is to ensure a safe and sound 
and competitive national banking system that supports the citizens, communities 
and economy of the United States.