Pub. 7 2019 Issue 1

www.uba.org 10 to exceed a specified previous average. As before, in- terest rate restrictions apply while the bank is less than well capitalized. Banks now have a much larger, approved source of stable deposits that can be tapped. This means banks can help even more customers—including businesses (large and small), nonprofits, municipal governments, financial advisers, and even individuals—to safeguard their funds, potentially at even higher levels. All at the same time attracting locally priced, large-dollar deposits, which can be used to reinvest in the bank’s community. Furthermore, banks can use reciprocal deposits to replace more expensive deposits, like routinely collateralized deposits that come with tracking burdens, and those from listing ser- vices (generally associated with wholesale pricing and no loyal or local customer relationship). Making the Most of This New Opportunity Now is the time to act by taking advantage of this important change in banking law. Read more about the new law and about the nation’s largest, most well-known reciprocal deposit services by visiting promnetwork.com . For more information, contact Glenn Martin at gmartin@promnetwork.com . n 1 The Bank Executive Business Outlook Survey is a publication of Promontory Interfinancial Network, LLC 2 Promontory Interfinancial Network calculates the reinvestment rate as the percentage of the aggregate balance of CDARS deposits that are reinvested through CDARS within 28 days of maturity. WORDS. DANI GORDEN Advertising Sales 855.747.4003 dani@thenewslinkgroup.com