Agencies Issue Host State Loan-to-Deposit Ratios
The federal banking regulators issued the host state loan-to-deposit ratios they will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Section 109 generally prohibits banks from establishing or acquiring branches outside of their home state primarily for deposit production. Banks that fail a two-step process involving loan-to-deposit ratios are in violation and subject to sanctions by the appropriate agency. View the Ratios.