Innovative deposit funding tool endorsed by ABA.
Position | ABA Resources |
An innovative new deposit placement service that helps banks--particularly community and regional banks--attract and retain larger local deposits, has been endorsed by the ABA.
The Certificate of Deposit Account Registry Service (CDARS) has developed by Promontory Interfinancial network, a financial services technology company led by former Comptroller of the Currency, Eugene A. Ludwig. The company is based in Arlington, Va.
ABA members have long expressed a need for a long-term solution to attract the new deposits necessary to fund lending and investment activities in their communities. "CDARS is such a solution," said Donald G. Ogilvie, ABA president and CEO. "Now smaller banks have the opportunity to promote a new, secure deposit choice that allows customers to keep their savings in a local institution."
Using CDARS, banks can now distribute customer funds into FDIC-insured certificates of deposit (CDs)...
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