NR 96-126
November 19, 1996

           New OCC Handbook Provides Examiner Guidance
              To Assess Bank Credit Card Operations

WASHINGTON, D.C. -- The Office of the Comptroller of the Currency
(OCC)  today published new guidance for examiners in evaluating
national bank credit operations.  The new Credit Card Lending 
booklet, which is part of the Comptroller's Handbook,
consolidates all examiner guidance on assessing bank credit card
activities into a single document.  

The booklet focuses on the risks associated with credit card
lending, which include credit, transaction, liquidity, strategic,
reputation, interest rate and compliance risks.  It discusses the
nature of each risk as it applies to the credit card business and
how banks are expected to measure, monitor and control these
risks.   

Credit Card Lending is based in part on the results of a major
review of the credit card industry initiated by the OCC in 1994. 
The review, which included the 15 largest national bank credit
card issuers, was designed to identify any significant changes in
the way national banks conduct their credit card activities.  

The procedures in the booklet address specific issues identified
in that review, including these specific recommendations by OCC
examiners:

-    More detailed guidance for analyzing allowances for loan
     losses;

-    Revised underwriting procedures to include separate
     procedures for the solicitation process, the approval
     process, and existing and new account review;

-    Procedures on cardholder acquisition and retention programs;
     and 

-    Additional guidance on profitability.

In addition to providing detailed examination procedures for
credit card operations, the booklet includes a review of all
major elements of the credit card business, including: overall
management and oversight, risk management control systems,
scoring models, marketing and underwriting of new accounts,
account management, collections, allowance for loan losses,
profit analysis, securitized assets, and purchased credit card
relationships.

Copies of the booklet are being sent to OCC examiners and to
national banks.  To order copies of Credit Card Lending, please
send your request and a $15 check for each booklet to:
Comptroller of the Currency, P.O. Box 70004, Chicago, IL 60673-0004.

                              # # #

The OCC charters, regulates and supervises approximately 2,800 national banks
and 66 federal branches and agencies of foreign banks in the U.S., accounting
for more than half 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.