Williams National Bank has its home office in New York State; however, it has branches in Nebraska. The federal banking agencies most recent host state loan to- deposit publication lists the loan-to-deposit ratio for Nebraska as 78 percent. For Williams Bank to pass the loan-to-deposit screen of the Reigle-Neal Act, what must its loan-to-deposit ratio be for Nebraska?
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A. B. C. D.C
The Reigle-Neal Act requires that a bank's loan-to-deposit ratio in a host state must be at least 50 percent in order to pass the loan-to-deposit screen.
In this case, Williams National Bank has branches in Nebraska, and the most recent host state loan-to-deposit publication lists the loan-to-deposit ratio for Nebraska as 78 percent.
Since the Reigle-Neal Act mandates a minimum loan-to-deposit ratio of 50 percent, Williams Bank must ensure that its loan-to-deposit ratio for Nebraska is at least 50 percent in order to pass the loan-to-deposit screen.
Therefore, the correct answer to the question is:
B. At least 50 percent