Arkansas
State Bank Department

Advantages of Being/Becoming A

State Chartered Bank

 

(updated February 26, 2008)

 

Arkansas state-chartered banking institutions enjoy many advantages.  As the primary regulator of a state bank, the Arkansas Bank Commissioner and State Bank Department are little more than a short drive or brief telephone call away from the banking institutions they regulate.  A regionally located staff of bank examiners provides an examination staff familiar with your banking area and local economic conditions.  The State Bank Department is comprised of Arkansas people interested in the welfare of Arkansas financial institutions.

 

1)         Self-Examination Program

            The State Bank Department has developed and made available to commercial banks, on a voluntary basis, a "Self-Examination Program".  This began March 1986 and has proven to be an effective management tool for bank managers and Boards of Directors.  Participating on a monthly basis, the Program provides a concise presentation of key ratios and performance indicators in the areas of profitability, efficiency, risk and asset quality, liquidity and growth.  For the bank manager and Board of Directors, it provides timely, accurate and meaningful information, which can assist in recognizing and understanding the bank's strengths and weaknesses.  Such understanding is essential in effectively planning a bank's sound and successful operation.

 

            The program also provides management with meaningful peer information generated from all commercial banks within Arkansas who participate in the program.

 

            To participate, management simply has to complete an input sheet, which requests key balance sheet and income statement items.  Department personnel review the information generated for accuracy and return the reports to management within a week.

 

            This service is offered to the banks by the State Bank Department at no cost to the participants.

           

2)         Training Offered

            The Arkansas State Bank Department continually strives to provide outstanding training for its examination staff, as well as bankers.  Some training previously offered included Capital Markets, Call Report, Fraud, and Bankruptcy.

 

            Member banks of the Conference of State Bank Supervisors have the opportunity to attend any of the courses offered by CSBS.  Some of the current courses offered include:

 

·        Bank Operations School – Dealing with the operational and accounting functions of a bank.

·        Credit Evaluation School – Designed to develop the student's ability to critique the condition of a loan portfolio and to better recognize the risk conditions associated with various types of loans and the potential exposure to the capital position.

·        Bank Financial Analysis – Includes information on the CAMELS ratings and various aspects of the UBPR.

·        Risk Focus – Participants will learn how to assess different internal and external risks and to understand indicators of a changing risk profile within an institution.

·        Trust Schools – Introductory and advanced courses give participants and understanding of fiduciary concepts, and provides in-depth knowledge of operations and administration of fiduciary activities of a trust company or bank trust department.

·        Boot Camp for BSA Professionals – An intensive experience that will fast forward your BSA Compliance knowledge and value to your regulatory agency or financial institution.

 

 

 

3)         Accessibility

            State Banking Department personnel, including the Commissioner, are personally accessible.  This promotes better communication and faster resolution of questions and concerns from bankers.

 

4)         Lower Cost

            State Banking Department assessments are generally significantly lower than fees assessed by the Office of the Comptroller of the Currency (OCC) or Office of Thrift Supervision (OTS).

 

            Fee Structure

            Identified below are selected fees assessed/charged by the Arkansas State Bank Department (ASBD) and the Comptroller of the Currency (OCC) effective January 2006:

                                                                                                ASBD                         OCC

Semiannual Assessment,
	$100,000,000 in assets:				$16,725	$24,781
Examination Fees:					$    -0-	$     110*
Applications:
	New Bank Charter (Independent)				$ 8,000	$25,000
	Charter Conversion				$ 8,000	$  5,000
	Branch (standard)				$    500	$     350
	Merger				$ 5,000	$  6,000
	Change In Control				$ 5,000	$10,000
		(new entrant to system)
	Fiduciary Powers				$    500	$  1,600

* Hourly rate to recover cost of conducting special examinations and investigations of national banks and related entities.

 

 

5)         Local Supervision

            State banks are examined by people familiar with the issues affecting local economics.  State examiners can make a more informed assessment of a bank's safety and soundness.

 

6)         Expeditious Treatment

            State Banking Departments are able to consider and respond to requests from state banks quickly with personal attention by telephone calls, letters, or personal visits.

 

7)         State Governance

            Statutes affecting state chartered banks are enacted by the state legislature, which is more sensitive to local needs and conditions than the U. S. Congress. Through contacts with state legislatures and their Governor, state bankers have considerably more opportunity to affect banking policy at the state level than at the federal level.

 

8)         State Banking Board

            State bankers have the opportunity to participate in the regulatory process through the State Banking Board.  This structure allows bankers to work with state regulators to achieve a safe, sound, and responsive banking system for all citizens.

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