Agencies issue host state loan-to-deposit ratios
EDT
Federal bank regulatory agencies today issued the host
state loan-to-deposit ratios that are used to evaluate compliance with
section 109 of the Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994. These ratios replace those from June 2021.
By law, a bank is generally prohibited from establishing or
acquiring branches outside of its home state primarily for the purpose
of acquiring additional deposits. This prohibition seeks to ensure
that interstate bank branches will not take deposits from a community
without the bank also reasonably helping to meet the credit needs of
that community. Last Update: June 28, 2022
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