As it did in the aftermath of Hurricane Sandy last year, the Office of the Comptroller of the Currency is urging the banks it oversees to adjust their operations following deadly tornadoes that ravaged the Midwest this week.

On Monday, the OCC reminded banks of 2012 guidance on natural disasters and stressed that adjusting terms on existing loans in affected areas should not be subject to examiner criticism.

The guidance for national banks and federal savings associations suggests that they consider the following when responding to natural disasters and those affected by them: waiving or reducing ATM fees; waiving late fees or penalties for early savings withdrawals; restructuring debt obligations; altering or adjusting payment terms; expediting lending decisions; and reassessing community credit community and helping meet them by originating or participating in sound loans to rebuild damaged property.

"Examiners will not criticize these types of responses as long as the actions are taken in a manner consistent with sound banking practices," the guidance says. "The OCC recognizes adjusting or modifying payment terms may be the most reasonable option for some borrowers when done prudently, and documentation deficiencies may occur because of bank staffing shortages and business disruptions during a recovery period."

The OCC will consider a bank's support of recovery-related activities in a disaster and help in revitalizing and stabilizing the affected area under provisions of the Community Reinvestment Act. It is also available to help expedite requests for assistance for critical issues such as cash availability and restoration of telecommunication services. As needed, it will approve temporary facilities needed to replace those damaged or destroyed during a natural disaster.

Affected banks should promptly notify their supervisory office if they expect a delay in filing Reports of Condition and Income or other reports. The OCC will evaluate any causes beyond the control of a reporting institution when considering the length of an acceptable delay.

The guidance also reminds banks that regional coalitions have been formed to facilitate the recovery of the financial services sector following a natural disaster or man-made attack. These coalitions facilitate information sharing with the government and strategic partners during a crisis and are open to all members of the financial services sector. A list of regional coalitions is located here.

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