Mapp Introduces Bill Intended To Increase Interest Rates On Government Deposits
- Ernice Gilbert
- August 16, 2015
ST. THOMAS -- Legislation Governor Kenneth Mapp says will increase the amount of interest the government yields on its deposits has been forwarded to the 31st Legislature, according to a press release Government House issued on Friday. If passed, the bill would authorize banking and depository institutions to utilize irrevocable letters of credit issued by the Federal Home Loan Bank of New York to collateralize and secure local government deposits held by such banking and depository institutions, according to the release. Currently the law provides for a narrow selection of securities that a bank or depository may pledge as satisfactory collateral to secure our government funds, said Governor Mapp. The securities issued and secured by the Federal Housing Authority are scarce, inflexible, inherently expensive, operationally inefficient, and problematic from a risk management perspective, according to the governor. In addition, requiring only these types of securities inhibit the amount...
