Banking Agencies Issue Host State Loan-to-Deposit Ratios
The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board and the Office of the Comptroller of the Currency have issued the host state loan-to-deposit ratios that the agencies will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Section 109 prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production. One test of compliance with the law involves a comparison of the bank's statewide loan-to-deposit ratio to the host state's loan-to-deposit ratio.
Attached are the press release issued jointly by the three agencies on March 23, 2000, and the host state loan-to-deposit ratios. This letter supercedes FIL-84-99, dated
September 7, 1999.
For more information, please contact Louise Kramer, Review Examiner in the FDIC's Division of Compliance and Consumer Affairs, on (202) 736-0241.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).