Bank Collateral Pool

The biggest benefit for a bank to participate in the TN Bank Collateral Pool is the ability to pledge all necessary collateral to secure deposits from public entities across TN in one convenient location as opposed to having collateral accounts established for each of the bank’s public depositors.

Choosing a participating bank is strictly the choice of a local government official. However, when a participating bank is chosen, the local government official no longer has to maintain safekeeping receipts for all pledged collateral. Most importantly, the local government official no longer has to have the ability to monitor the daily market value of the collateral that is pledged to them. All of the work is done at the Treasury Department. All participating banks sign a contingent liability agreement guaranteeing that all public deposits in excess of FDIC insurance coverage are secured by the TN Bank Collateral Pool program.

The collateral pool utilizes two pledge levels; 100% and 115%. The Board of Directors of the TN Bank Collateral Pool establishes the pledge levels based upon a series of performance factors that are outlined in the Rules of the program.

There are no fees for a bank to join or operate in the collateral pool.

Banks must submit a monthly depository report by the 15th of each month. Additionally, each bank must submit the Annual Management Certification and Annual Certification for Independent Auditors each year no later than March 31. Click here to find all the reporting requirements and information.

Contact a member of the Treasury Department at collateral.pool@tn.gov or call (615) 532-1163. The bank will have one employee designated as a system administrator and will create access roles for the other employees at the bank that will need to access the online system.

Participating banks will be able to log into a secured portal and have the ability to easily pledge and release securities, view the securities that are currently pledged, view the market value of each security and the total market value of all securities pledged, and be able to see at-a-glance if the bank has sufficient collateral pledged.

If a bank needs to pledge or release a security pledged to the collateral pool and cannot access the online portal application, email a pledge or release form for each applicable security to collateral.pool@tn.gov . The form can be located under “Documents at a Glance”.