Investment Management

Bank Collateral Pool

Allows banks and local governments statewide to participate in a pool designed to provide greater efficiency and a lower risk

Tennessee State Seal

Tennessee's Bank Collateral Pool was authorized by the General Assembly in 1990 to allow banks and local governments statewide to participate in a pool designed to provide greater efficiency and a lower risk when collateralizing public funds.

Bank Collateral Pool Participants

These institutions are currently members of the State of Tennessee Bank Collateral Pool as of September 14, 2018.

View current Bank Collateral Pool participants

Bank Collateral Pool Board

Oversees the risk-sharing pool of collateral pledged by participating financial institutions to guarantee public deposits..

Learn about the Bank Collateral Pool Board

Frequently Asked Questions

Click any of the following questions to view the answer.

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”.

Documents at a Glance

These documents may be helpful for particpates or those interested in the Bank Collateral Pool

Depository Pledge and Contingent Liability Agreement Rules and Regulations

Monthly Depository Report Annual Reporting Requirement

Notice of Change Application for Admission

Tennessee Legislative Plaza

Contact Us

Is you would like to participate in the Bank Collateral Pool:

Bank Collateral Pool
(615) 532-8722

Collateral.Pool@tn.gov

Local Government Investment Pool
(615) 532-1163

Mailing Address

Bank Collateral Pool Board
P.O. Box 198785
Nashville, TN  37219-8785