Market Minds

The FDIC today made public for the first time host state loan-to-deposit ratios. Alas, the data is quite dated, as it represents the June 30, 2008 snapshot. Since then one can imagine things have changed quite a bit. The data are being released in order to calculate compliance with “section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.” Here is what the FDIC has to say about section 109: 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 106 of the Gramm-Leach-Bliley Act of 1999 amended coverage of section 109 of the Interstate Act to include any branch of a bank controlled by an out-of-state bank holding company. To determine compliance with section 109, the appropriate agency first compares a bank’s statewide loan-to-deposit ratio2 to the host state loan-to-deposit ratio for a particular state

The rest is here:
FDIC Releases State Loan-To-Deposit Ratios