The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have 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.  These ratios update data released on June 12, 2007.

In general, section 109 prohibits a bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production.  Section 109 also prohibits branches of banks controlled by out-of-state bank holding companies from operating primarily for the purpose of deposit production.

A bank that is in violation of section 109 is subject to sanctions by the appropriate banking agency.

See the press release for full details.

Press release

Contact:
Public Affairs
(212) 720-6130
general.info@ny.frb.org