MEMBERS PRESENT

William A. Darr
Commissioner
Office of Banks & Real Estate
Chicago, Illinois 60604-4278

Joy French Becker
President
Farmers State Bank & Trust Company
Jacksonville, Illinois 61651-1127

A. Dean Decker
President and CEO
Central Bank Illinois
Geneseo, Illinois 61254-0089

John Eck
Senior Vice President
ABN AMRO Bank N.V.
Chicago, Illinois 60603

Gary N. Edwards
President and CEO
State Bank of Lima
Lima, Illinois 62348

Mark G. Field
Chairman, President and CEO
The Farmers Bank of Liberty
Liberty, Illinois 62347-0196

Merlin E. Karlock
Chairman and CEO
Municipal Trust and Savings Bank
Bourbonnais, Illinois 60914-2311

Lee J. Plummer
Class A Member
Jerseyville, Illinois 62052

Paul V. Reagan
Senior Vice President & US General Counsel
Harris Trust and Savings Bank
Chicago, Illinois 60606

STAFF PRESENT

Alan Anderson, Legislative Liaison
Office of Banks and Real Estate

Scott D. Clarke, Assistant Commissioner
Bureau of Banks and Trust Companies

Kerri A. Doll, Policy and Procedures Administrator
Bureau of Banks and Trust Companies

Marc A. Edwards, Director
Division of Commercial Bank Supervision – Springfield

Tom Kaufmann, Assistant Director
Division of Specialized Activities Supervision

Wes Maynard, Director
Division of Commercial Bank Supervision – Chicago

Claudia Navarro, Executive Assistant
Commissioner’s Office

Craig Volk, Assistant Director
Division of International Bank Supervision

Michael Morehead, Chief Counsel
Bureau of Banks and Trust Companies

Dale R. Turner, General Counsel
Office of Banks and Real Estate

MEETING MINUTES

Chairman Darr called the meeting to order at 10:04 am and thanked everyone for attending. Members of the board and staff introduced themselves. Mr. Edwards made a motion to accept the minutes of the last meeting of September 25, 2001. Mr. Decker seconded the motion. The motion was unanimously approved.

Chairman Darr gave an update on the April 30 and May 1 Financial Literacy Conference held at the Hilton in downtown Chicago. There were approximately 100 educators, community activists, social service agency representatives, business people, and bankers in attendance. The Commissioner indicated that current statistics show that there is a real need for financial literacy training throughout the general population. The Commissioner went on to say that there are many people who do not know how to tell a good deal from a bad deal and that is the reason for many problems the public faces such as predatory lending. The Governor appointed a task force on financial literacy, which OBRE will administer. There are 45 individuals on the task force. The task force is broken down into 7 subcommittees. They are as follows: adult literacy, standards for school children, assessments on how well the children are doing based on the standards, marketing, funding, a pilot program. The Commissioner indicated that the subcommittees are moving forward at a pace the Agency is very pleased with to try to develop a financial literacy program to be implemented in every school in the state. The task force is trying to set up a pilot program which could be implemented in approximately 8 to 10 schools this winter to address the problem of financial literacy. Commissioner Darr stated that this is a hot topic around the country. The task force is also working with the FDIC and their Money Smart program.

Chairman Darr requested a report on the status of each Division.

Mr. Craig Volk, Assistant Director of International Bank Supervision discussed the four charts included in the meeting materials. Mr. Volk mentioned that the number of foreign banking offices continues to decline due to consolidation, mergers, and technology advances. Mr. Volk talked in detail about the one institution that received a composite “3” examination rating.

Mr. Wes Maynard, Director of Commercial Bank Supervision – Chicago discussed the four charts included in the meeting materials. The charts represent data for all state chartered commercial banks in the state. Mr. Maynard reported that the Commercial divisions are conducting a joint review of their current examination procedures.

Mr. Marc Edwards, Director of Commercial Bank Supervision – Springfield gave a detailed report of the status of the banks under his supervision and an overview of the pending Corporate Activities applications within the Bureau.

Mr. Tom Kaufmann, Assistant Director of the Division of Specialized Activities Supervision discussed the 2 charts pertaining to Information Systems examinations and the 3 charts pertaining to the corporate fiduciaries examinations.

Mr. Alan Anderson, Legislative Liaison, provided a summary of the 2002 legislative session and the banking related legislation that was signed into law.

Mr. Michael Morehead, Chief Counsel provided a summary of the rules the Agency will be submitting to the General Assembly’s Joint Committee on Administrative Rule. Mr. Morehead also discussed the 8 interpretive letters issued this year. Copies of the letters were provided to each member.

Mr. Scott Clarke, Assistant Commissioner of the Bureau of Banks and Trust Companies, briefed the committee on the Governor’s proposal for an Early Retirement Incentive and the potential impact on the Banking Bureau. The Agency will not know for sure until December 31, 2002 exactly how many examiners might take advantage of the program or the impact that it might have on our ability to meet our examination responsibility. Mr. Clarke also discussed the potential large “lump-sum” pay out for unused sick and vacation days and the potential impact that could have on the Agency’s budget.

There being no further business before the board, Mr. Field made a motion to adjourn, seconded by Mr. Decker, that the meeting be adjourned. The motion was unanimously approved. The meeting adjourned at 12:35 PM.