Retain valued customer relationships with 'CDARS one-way' fund swap.

• Position: Certificate of Deposit Account Registry Service - Brief Article

Let's say your bank wants to retain certain important customer relationships. And, it also wants an easy way to accept deposits without affecting balance sheets and capital positions.

In response to requests from its member banks, Promontory Interfinancial Network, LLC, of Arlington, Va., recently announced a product to answer these needs: CDARS One-Way. The product makes R possible for member banks to place funds at other members of the network and collect noninterest fee income in return. CDARS One-Way enhances the network's original services, CDARS (Certificate of Deposit Account Registry Service), which started in January 2003.

With CDARS, banks can provide investors--individuals and institutions with up to $5 million in federal deposit insurance. To provide the insurance, a network member bank will, in effect, exchange deposits with other members. With CDARS, customers who want...