The Banker's Advocate - March 31, 2004 - Page 3

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Text Box: extended due to the difficulty of coordinating meetings. These guidelines generally apply to each type of examination, including commercial, holding company, compliance, trust and information systems. If you are preparing for a safety-and-soundness examination, here are a few specific words of advice. Make sure internal loan risk ratings are appropriate – something that must be done regularly anyway – and that the loan-loss reserve is fully funded. Another word of advice about commercial examinations: The bank’s “problem loan” list should be longer than the examiners’ list. For all examinations, however, your goal should be “no surprises.” Now it’s your turn. If you have any suggestions for improving the pre-examination process, please let us know.

Text Box: prepared and all information requested in the pre-exam packet is available on Day One. After pre-examination items have been assigned to personnel, the banker should review the most recent state and federal reports of examination. At the upcoming examination, examiners will review all items that warranted comments in these reports. If there was a specific problem area at the previous examination (technical exceptions, Bank Secrecy Act, etc.), the banker should determine if and how it has been corrected. If items have not been corrected, start on them immediately! When the examiners arrive, the president should schedule a meeting as soon as possible between the EIC, assistant examiner in charge and the bank’s senior staff. Introductions should be made at this time so that everyone knows the important “players.” Also, at this point, the

Text Box: president’s “To Do” list should be given to the examiners. The list should point examiners in the right direction when they begin assignments. It is imperative that key bank personnel be present for the examination. Emergencies will happen, but if the president knows one or more of the bank’s key employees will be out during the examination, the situation needs to be addressed and discussed as soon as possible. Examiners’ time in the bank will be shortened if employees they need are available. Furthermore, on a smaller scale, working conditions are a factor, although we understand less-than-optimal conditions sometimes cannot be avoided. If examiners are located away from the bankers, the examination likely will have to be

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State Bank Department

Text Box: Commissioner Robert H. “Bunny” Adcock Jr. has been appointed to the Board of Directors of the Conference of State Bank Supervisors. CSBS is a national organization that represents the interests of state bank regulators. The appointment, for one year, is effective immediately.

Text Box: CSBS appoints Adcock to board

Text Box: Three bank director training workshops are now on the calendar. The Arkansas Bankers Association has scheduled workshops for September 28 at the Holiday Inn in Jonesboro and for September 29 at the Wyndham Hotel in North Little Rock. For more

Text Box: information, call Derek Rudkin at 501-376-3741. The Arkansas Community Bankers Association plans a workshop on October 12 at Lake Hamilton Resort in Hot Springs. The workshop is to be presented as part of the association’s Community Bank Director Conference.

Text Box: Additional details are available from Richard Trammell at 800-771-1634. Training for directors of Arkansas state-chartered banks is required by Administrative Policy #008 of Arkansas State Bank Department Rules and Regulations.

Text Box: could be made to our Department. Our staff realizes that the Federal Reserve, the FDIC and our banks are all changing. We have to change in order to stay current and to do our job. The staff has been open to the suggestions and eager to learn. Youthfulness. When Deputy Commissioner Don Clark retires next January, I will be the oldest person on the senior staff, an “ancient” 56. Because of the impact of modern technology on banking and examinations, our young examiners are equipped with the knowledge and experience to handle the demands of the present time. Attitude. Our staff is a proponent – not opponent – of Arkansas banks. We want our banks to succeed and we try to work with our bankers, especially those experiencing problems.