Banks in the US are asked by regulators to take more deposits from heavy investors even if this may be unprofitable. Lenders are seeking in return some relief on insurance premiums and leverage ratios.
U.S. banks are seeking regulatory relief from a flood of deposits as investors seek safe places for their money away from Europe’s debt crisis and falling stock prices.
Regulators have asked banks to take the deposits anyway, three people said, the report said.
The regulators want lenders to take the deposits because it improves the stability of the financial system, according to one of the people, who said U.S. banks are viewed as places of strength.
More deposits mean banks have to pay more fees to the Federal Deposit Insurance Corp, which insures customer deposits up to $250,000. The fees are assessed on a quarterly basis and calculated using the banks’ daily average deposit and asset levels.
Lenders have held discussions with officials at the Fed, FDIC, Office of the Comptroller of the Currency and the Treasury Department, according to four of the people, the report said.
Source : Reuters
