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

  1. FRB, FDIC and OCC Section 109 Host State Loan-to-Deposit Ratios
  2. FRB, FDIC and OCC Press Release: Agencies issue host state loan-to-deposit ratios

Originally published June 03, 2020

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