BATON ROUGE, LA - State Treasurer Ron Henson announced today that the Louisiana Department of the Treasury has awarded a three-year state central banking services agreement to JPMorgan Chase, with the option to extend for two one-year periods.
"Chase unquestionably had the best proposal in terms of expertise and cost savings," said Treasurer Henson. "The agreement will incorporate a variety of efficiencies that will save the state $1.8 million over a five-year period. We are pleased to partner with Chase to provide the best possible services to public agencies and Louisiana taxpayers."
The State Treasury administers the state's centralized cash management system to receive, disburse, invest and safely keep all monies required by law to be held by the Treasury. This cash management system uses a central depository bank account to receive check deposits, Automated Clearing House (ACH) credits, wire transfer credits, other deposits, and transfers from other bank accounts. Last fiscal year, the Treasury processed 13 million deposit items through the state's central depository bank account.
The Treasury also relies on the central depository bank to provide cash management reporting software in order to earn the best possible return on investments while providing daily liquidity the state requires to meet its obligations. The bank provides a daily report of investment activity that is critical in reconciling the Treasury's investment portfolio.
"JPMorgan Chase considers it an honor to serve the State of Louisiana and its residents through this important and comprehensive banking contract," said John L. Daniel, Executive Director of Government Banking in Baton Rouge. "Louisiana is very important to Chase. We have more than two million retail-banking customers in our state, and we've been the Number One Small Business Administration lender in Louisiana for five straight years."
The Treasury issued a request for proposals (RFP) for the state central banking services agreement on March 10 and made the award May 1. The agreement with Chase will start November 1 and will last until the Year 2022.