What is a “Source” institution?
It is a public or private entity that sources/sends us their funds and participates in one or multiple custom TBS programs.
What technology or back office changes will our bank have to make?
How is compliance handled?
Compliance is handled by the institution sourcing the deposits. This includes CIP, AML, and tax reporting. All the institutions with whom TBS deals are regulated entities. Compliance is mandated in the sponsor contract.
What is the daily timing of events?
On the deposit side, notification will be sent with the daily activity by 4:30 p.m. EST, and wires will be sent before the Federal Wire System closes. TBS receives balance files and notification every morning from the deposit banks and the settlement bank for reconciliation purposes.
How do your program rates compare to those of the FHLB?
TBS’ rates are competitive with the FHLB advance rates, the process is simpler, and there are no collateral requirements or membership fees.
How stable are these deposits?
The IDP deposits at TBS program banks have remained stable, within their determined target and maximum deposit levels, since inception of the program.
What kind of reconciliation is done and how often?
Reconciliation is done on a daily basis. TBS reconciles the activity in the settlement account, as well as the balance in each bank omnibus account, to the individual accounts on TBS’ system and the balances on the source system with TBS balances. Accruals and fees with each deposit bank are also reconciled daily.
How do you determine if a bank is eligible to participate in your program?
TBS uses an independent, third-party firm to provide due diligence on each potential program bank, using four key ratio requirements:
These requirements are monitored for each bank on a quarterly basis and must be met continuously in order to remain in the program.
How do I get started?
Call and speak to one of our experienced professionals at 888-809-9600. You will sign the necessary paperwork, determine your target and maximum deposit levels, and set target implementation date. Then, we will schedule conference calls and staff training to outline the necessary operational processes. The entire implementation process can be completed within 30 days