Utah banks sign mutual-aid accords

(Deseret News) Most of Utah's "Main Street" banks have signed agreements to help each other out with space to operate in the event of a physical disaster that puts a branch out of commission.

On Tuesday, more than a dozen representatives of banks that do operation in Utah met with Gov. Gary Herbert to discuss the Utah Bankers Association Business Continuity Plan and to sign the Reciprocal Aid Agreement. The agreements between banks, which was worked out over the course of a year, are part of an ongoing effort to strengthen the financial security of individuals and communities in case of disaster, said Howard M. Headlee, the president of the Utah Bankers Association.

Due to their regulatory structure, banks have "extensive plans" for how to respond and work together in times of calamity, he said.

This hypothetical situation shows how it would work: An earthquake knocks down the sole location of MyMoney'sHere Bank in SmallTown, Utah. The town's other bank, competitor WishItWereHere Bank, under the agreement, makes space available for MMH to operate in its facilities for up to 10 days (15 with an agreed-upon extension).

The two don't exchange information about customers or data. MMH Bank provides a couple of staffers to handle its transactions and WIWH Bank allows use of space and agrees to sell money from its vault to the victim bank.

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