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| We believe in the years ahead, successful community banks will be those that formally develop a meaningful, forward-looking and cost-effective wholesale funding strategy to complement their retail deposits. DTC eligible CDs can play an important role in a bank's diversification efforts. |
| Depository Trust Company (DTC) eligible CDs are a flexible and efficient way for your bank to gather large deposits tailored to your specific needs. Issued in blocks of $1 million to $250 million, each deposit is represented by a single certificate issued and held in the name of the Depository Trust Company. |
DTC eligible CDs are a complement to traditional funding sources and
are an effective way to access the national marketplace. PMA Funding™
Advisors work closely with banks to determine an optimal allocation of
DTC eligible CDs, which gives banks the ability to better manage their
cost of funds. Other benefits include:
- ease of establishment
- minimal documentation
- a flexible structure
- access to large block deposits
- a single certificate per maturity
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| The Depository Trust Company (DTC), established in 1973, was created
to reduce costs and provide clearing and settlement efficiencies by
immobilizing securities and making “book-entry” changes to ownership
of the securities. In 2008, DTC settled transactions worth almost $455
trillion, and processed 316.6 million book-entry deliveries.
DTC is a member of the U.S. Federal Reserve System, a limited-purpose
trust company under New York State banking law and a registered
clearing agency with the Securities and Exchange Commission.¹
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| ¹Source: Depository Trust Company, 2009. |
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- Access to large block deposits.
- Flexible structures.
- A single certificate per maturity
- Easy to establish.
- Simple and standardized documentation, clearing and settlement.
- Specialized support through professional PMA Funding™ advisors.
- Rates generally lower than other term funding options.
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