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7/25/24, 10:22 AM FRB: Press Release -- Agencies set annual host state loan-to-deposit ratios -- June 28, 2001 Release Date: June 28, 2001 For immediate release Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Banking Agencies Issue Host State Loan-to-Deposit Ratios The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today 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 March 23, 2000. 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. As further discussed in the attachment, section 109 also prohibits branches of banks controlled by outof-state bank holding companies from operating primarily for the purpose of deposit production. Section 109 provides a process to test compliance with the statutory requirements. The first step in the process involves a loan-to-deposit ratio screen that compares a bank's statewide loan-to-deposit ratio to the host state loan-to-deposit ratio for banks in a particular state. A second step is conducted if a bank's statewide loan-to-deposit ratio is less than one-half of the published ratio for that state or if data are not available at the bank to conduct the first step. The second step requires the appropriate banking agency to determine whether the bank is reasonably helping to meet the credit needs of the communities served by the bank's interstate branches. A bank that fails both steps is in violation of section 109 and is subject to sanctions by the appropriate banking agency. The updated host state loan-to-deposit ratios are attached. Media Contacts: Federal Reserve: Susan Stawick (202) 452-2955 FDIC Frank Gresock (202) 898-6634 OCC Dean DeBuck (202) 874-4876 Attachment (118 KB PDF) 2001 Banking and consumer regulatory policy https://www.federalreserve.gov/boarddocs/press/general/2001/20010628/default.htm 1/2 7/25/24, 10:22 AM FRB: Press Release -- Agencies set annual host state loan-to-deposit ratios -- June 28, 2001 Home | News and events Accessibility Last update: June 28, 2001 https://www.federalreserve.gov/boarddocs/press/general/2001/20010628/default.htm 2/2