Federal bank regulatory agencies have released updated host state loan-to-deposit ratios. These figures are mandated by law and illustrate the proportion of total loans to total deposits within a state for banks that consider that state their home base. The newly issued ratios replace those from May 2024.

The law generally prohibits banks from establishing or acquiring branches outside their home states mainly to gather more deposits. This regulation aims to ensure that interstate bank branches do not collect deposits from a community without also addressing its credit needs.

Information on the updated ratios and their role in compliance evaluation is accessible.