Rofkahr Consulting

Northwest Arkansas, the hottest place in the state for real-estate, an explosive market center and a veritable mecca for trucking, poultry and WAL-MART, is going through a change. After a boom that started in the 1980′s the region’s growth is slowing, and the markets??? Well, business is ‘a changin!’

In the past 9 months bankruptcies swelled, foreclosures boiled, residential and commercial lots grew weeds, and bargain hunters flourished. While still one of the strongest metro areas in Arkansas, the NWA growth engine is starting to idle. New business growth is DOWN and housing starts are going, going, gone. Houses started over 12 months ago – they’re not selling. For financial organizations in the region times are *interesting*.

Commercial Real Estate loans have effected the stock price of both larger Arkansas public banking companies. Bank of the Ozarks is fighting to assure investors its portfolio of CRE is sound. Regions Bank seems, as usual, to be nonchalantly enjoying the scenery during the plunge. The closely held banks with CRE concentrations are checking their pockets for depth and forgotten rips. Watch the papers and this site for more.

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BSA/AML, anyone in banking for more than the time to make a deposit knows the significance of these six letters. Bank Secrecy Act/Anti-Money Laundering programs and procedures have been one of the main weapons against terrorist money movement. Now it seems bank regulators are going to place additional responsibility on the bank for the implementation of these important regulations.

Sometime in the near future, the bank’s annual review will be responsible for determining the greater risk areas of the bank’s operation. The independent review will be responsible for testing these areas. For additional information and/or a bid to provide this annual independent service please call or e-mail.

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