The Federal Reserve Board, the FDIC and the Office of the Comptroller of the Currency (collectively, the "banking agencies") updated the "host state loan-to-deposit ratios." According to the banking agencies, the host state loan-to-deposit ratio "is the ratio of total loans in a state to total deposits from the state for all banks that have that state as their home state."
The banking agencies use the ratio to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (the "Act"). Section 109 of the Act prohibits a bank from establishing or acquiring branches outside of its home state primarily for the purpose of deposit production.
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