When asked which provision of the S. 2155 regulatory reform bill would be most meaningful to them, community bankers were most likely to rank the policy change to make most reciprocal deposits non-brokered. On the latest episode of the ABA Banking Journal Podcast, two community bankers — Tony Collins of Southern Bank and Trust and Jim Di Misa of Community Bank of the Chesapeake — join Steve Kinner of Promontory Interfinancial Network to explain how the new law’s provisions put their banks in a more competitive position. Collins, Di Misa and Kinner discuss how using reciprocal deposits can help banks:
- Compete for large-dollar deposits from local businesses, nonprofits and civic institutions by providing FDIC insurance in excess of the $250,000 limit
- Support efforts to recruit these businesses as loan customers
- Lock in low-cost deposit funding and replace funding referred through listing services
If you can’t see the audio player above, click here to listen to this week’s episode.