The Federal Reserve
Board, the Office of the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation today issued the host state loan-to-deposit
ratios that the banking agencies will use to determine compliance with
section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994 (Interstate Act). These ratios update data released on August
Section 109 prohibits
any bank from establishing or acquiring a branch or branches outside
of its home state under the Interstate Act primarily for the purpose
of deposit production and provides a two-step process to test compliance
with the statutory requirements.
The first step involves
a loan-to-deposit ratio screen that compares a bank’s statewide loan-to-deposit
ratio to the host state loan-to-deposit ratio for banks in a particular
The second step
requires the banking agencies to determine if the bank is reasonably
helping to meet the credit needs of the communities served by the bank’s
A bank that fails
both steps is in violation of section 109 and is subject to sanctions
by the banking agencies.
The host state loan-to-deposit
ratios are attached.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the
nation's banking system. The FDIC insures deposits at the nation's 10,390 banks and savings
associations and it promotes the safety and soundness of these institutions by identifying, monitoring and
addressing risks to which they are exposed.
FDIC press releases and other information, including today's quarterly
listing, are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).