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Financial Institution Letters

Host State Loan-To-Deposit Ratios
2005 Ratios
July 29, 2005

Summary: The federal banking agencies have issued the attached host state loan-to-deposit ratios for 2005.

  • The banking agencies have issued the attached 2005 host state loan-to-deposit ratios used to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act. These ratios update information published on August 26, 2004.
  • Section 109 prohibits any bank from establishing or acquiring a branch outside its home state primarily for the purpose of deposit production. This prohibition applies to any bank branch controlled by an out-of-state bank holding company.
  • As part of the test for compliance with Section 109, a bank’s statewide loan-to-deposit ratio is compared to the appropriate host state loan-to deposit ratio.

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Compliance Officer

Related Topics:
Community Reinvestment Act

Section 109 Host State Loan-to-Deposit Ratios

Deirdre Foley, Senior Policy Analyst, at dfoley@fdic.gov or (202) 898-6612

Printable Format:
FIL-70-2005 - PDF 38k (PDF Help)

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Last Updated 7/29/2005 communications@fdic.gov