WASHINGTON – Federal bank regulatory agencies recently 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. The new ratios replace those from a year ago.
By law, a bank is generally prohibited from establishing or acquiring one or more 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.
Host state loan-to-deposit ratios used by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency include:
Ÿ Oklahoma, 78%.
Ÿ Texas, 62%.
Ÿ Arkansas, 78%.
Ÿ New Mexico, 56%.
Ÿ Kansas, 72%.
Ÿ Missouri, 71%.