COLUMBIA, S.C. (AP) -- The South Carolina treasurer will put $100 million in state deposits up for bid in the hopes of giving the state's banks more money to lend to businesses and consumers.
Treasurer's office spokesman Scott Malyerck says Thursday's auction is $25 million more than the state usually makes available every three months.
Banks make bids for deposits by offering interest rates they will pay for holding the money for six months. Banks must take at least $100,000 and the maximum is $5 million per institution. Since the amounts typically exceed federal deposit insurance limits, the banks must have collateral to guarantee the state will get its money back.
The most recent auction in July put $75 million in 32 banks at interest rates ranging from 2.769 percent to 3.31 percent.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
TV Station Profiles & Public Inspection Files forWACH