North Dakota's loan-to-deposit ratio was tops in the nation for the second straight year, according to findings released Tuesday by federal regulators.
In the 12 months through June 30, 2006, loans made in North Dakota were 136% of deposits, a four-percentage-point increase from the previous year. Indiana remained No. 2, though its ratio dropped a point, to 116%.
Not too far behind were Delaware (113%), Ohio (111%), Wisconsin (107%), and Michigan (106%).
Notable changes included a 21-point increase in New Jersey, which had a ratio of 81%, and a 13-point drop in South Dakota, which also had a ratio of 81%.
The ratio was lowest in Nevada (64%), Louisiana (71%), and New Mexico (73%).
The Federal Deposit Insurance Corp., Federal Reserve Board, and Office of the Comptroller of the Currency collect loan-to-deposit ratios to ensure that banks comply with the Riegle-Neal Interstate Banking and Branching Efficiency Act.
To comply, out-of-state banks must maintain loan-to-deposit ratios that are at least half the ratio of the host state.
