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Inactive Financial Institution Letters

HOST STATE LOAN-TO-DEPOSIT RATIOS

FIL-21-2000
March 24, 2000

TO: CHIEF EXECUTIVE OFFICER AND COMPLIANCE OFFICER
SUBJECT: 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.

Stephen M. Cross
Director

Attachment: PR-21-2000 Joint Press Release on Host State Loan-to-Deposit Ratios

Attachment: Section 109 Host State Loan-to-Deposit Ratios

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).

Last Updated 03/24/2000 communications@fdic.gov