The Federal Reserve Board, the FDIC and the OCC (collectively, the “Agencies”) updated “host state loan-to-deposit ratios” for 2020.
The ratios are used in assessing compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which prohibits a bank from establishing or acquiring a branch or branches outside its home state primarily for the purpose of deposit production. Congress enacted section 109 to ensure that interstate branches would not take deposits from a community without helping to meet the credit needs of that community.
According to the Agencies, the ratios replace those published on May 28, 2019 (see previous coverage).
Primary Sources
- FRB, FDIC and OCC Section 109 Host State Loan-to-Deposit Ratios
- FRB, FDIC and OCC Press Release: Agencies issue host state loan-to-deposit ratios
Originally published June 03, 2020
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