Kansas
Quarterly Interest
The Newsletter of the Office of the State Bank Commissioner
Summer 2005 Issue

Commissioner's Corner
By: Clancy Norris, Bank Commissioner

Dear Kansas Bankers,

The half-way mark of 2005 has passed and our Kansas state-chartered banks are very strong and healthy. The state banks continue to have strong earnings and there are fewer problem banks.

The state presently has 130 #1 rated banks and 120 which are #2 rated. There are only 11 #3 rated banks and none which are rated either #4 or #5. Assets of over $27 billion have now reached an all time high.

Although everything seems to be very good, there continues to be more non-bank competitors. Bankers must be aware of Wal-Mart, 7-Eleven, State Farm, and Allstate, as well as auto lenders, real estate brokers, finance companies, insurers, check cashers, payday lenders and money transfer firms. Also, the credit unions and the farm credit system continue to enjoy their waiver of corporate income taxes.

However, bankers still have a big advantage over each of these new competitors. Be positive and remember that banks continue to have the trust of their customers. In addition, there are other key strengths such as: branch density -- easier customer access to banks; a wide range of integrated products and services; better use of technology -- quick response to new programs like Check 21; competitive fees; and quality service -- profitable, yet efficient customer service. I believe that having your customers' trust and providing exceptional quality service are the keys to maintaining strong state-chartered banks in Kansas.

I am very concerned about the increasing incidence of identity theft. Hopefully, awareness of this problem will be a big step in trying to prevent it. It is my understanding that there were over 10 million people affected by identity theft last year, which averages out to 27,000 individuals per day, 1,100 per hour, and 19 per minute. There were also substantial costs associated with the theft -- approximately $48 billion in losses to businesses and financial institutions and $5 billion in out-of-pocket expenses (an average of $6,700 per victim). And, in the majority of the cases (74%), the victims were strangers to the thief.

Perhaps the most difficult issue with identity theft results from trying to restore your name and your records. The Government Accountability Office has estimated that it takes at least one year to completely reestablish your name and credit records. Here are some prevention tactics that seem to work well: check your credit reports at least two to three times per year and dispute any inaccuracies; shred all throwaway documents that bear your name, address, and any account numbers; reconcile bills and all financial statements; be cautious when ordering on-line and by mail; utilize password security software, such as Norton Password Manager; memorize your PINs and passwords; photocopy all documents in your wallet/purse; and be extremely careful when using your credit or debit cards and your checking account. Common sense is more important today than ever before.

The "Commissioner's Listening Tour" is scheduled again this fall. This tour allows the OSBC to provide you with an update on the agency and to solicit your comments and questions. I hope you will mark this event on your calendars and plan on attending the session in the city closest to you. There have been many requests for the listening tour and I feel it is a perfect time for us to communicate with each other and discuss current banking needs. Deputy Commissioner Judi Stork and I look forward to traveling to a city near you and have outlined the tour schedule below. Please take advantage of this opportunity to visit with us and to get better acquainted.

Watch your mail for complete details, including registration information!

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