July 1, 2002 News Archive

Upcoming DeNovo Bank Conference
Supervision and Regulation will host its second annual De Novo Banking Conference on September 24, 2002. Registration materials will be available soon. For more information about this year's event contact Colette Fried.

A special Iowa seminar is also planned for August 29, 2002. The Iowa seminar is intended for those considering opening a bank and those who are already involved in de novo banking, especially executive management and directors. Topics to be discussed include: operational risk, corporate governance, capital, and compliance, among other things. To register or for more information about the Iowa seminar, contact Barb Agan.

Board Issues Report on Banks' Credit Card Profitability
The Board of Governors filed its twelfth report(PDF) to Congress on credit card profitability in the banking industry. Although down from their 1993 high, returns on credit card operations at large credit card banks increased 10 basis points in 2001, to 3.2 percent.

2002 Host State Loan-to-Deposit Ratios
The Fed and other federal agencies 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. Section 109 generally prohibits a bank from establishing or acquiring a branch or branches outside of its home state for the purpose of deposit production. To comply with section 109, a bank's statewide loan-to-deposit ratio should be at least half of the published host state loan-to-deposit ratio. The 2002 host state loan -to-deposit ratios for states in the Seventh District, based on June 30, 2001 data, are as follows: 90% for Illinois, 119% for Indiana, 80% for Iowa, 103% for Michigan, and 99% for Wisconsin.