Most Reciprocal Deposits Are No Longer Brokered
Reciprocal deposits have historically been a cost-effective way for banks to build a stable balance sheet and acquire more funds to lend. A new law, the Economic Growth, Regulatory Relief, and Consumer Protection Act, provides that most reciprocal deposits are no longer treated as brokered deposits. This presents an even greater opportunity for banks to use reciprocal deposits to grow high-value relationships and franchise value.
Reciprocal Deposits Can Boost Deposit Growth and Local Lending
Now that the law has passed, banks can use CDARS Reciprocal and ICS Reciprocal to
- attract even higher amounts of stable, relationship-based funding;
- reach out to even more customers and seek business at even higher levels than before;
- make more loans in the local community; the full amount of reciprocal deposits can be used for this purpose; and
- replace more expensive deposits, like routinely collateralized deposits and those from listing services (generally associated with wholesale pricing and no loyal or local customer relationship).
Want to Learn More about How the New Law Impacts Reciprocal Deposits?
Banks can find out about the many benefits of ICS and CDARS by registering for a free webinar, ICS and CDARS: Taking Advantage of New Opportunities.Register Now!