Banking Services

The primary mission of Banking Services is to manage and control banking relationships for all banking needs for the State of Maryland and to anticipate agency needs and respond timely to agency requests.

 

The Banking Services Division (BSD) is directly responsible for procuring and managing the banking needs for all agencies of the State of Maryland. This includes:

+ Agency-specific depository accounts – Individual depository accounts are maintained for all State agencies, and balances are consolidated at the end of each day into the State’s main depository account. This allows for accurate agency-level transaction reporting with automatic concentration of funds for cash management effectiveness.
+ Disbursement accounts for vendor payments, payroll, and income tax refunds
+ Lockbox services
+ Merchant account services (credit and debit card receipts)
+ Agency working fund, trust, and escrow accounts
+ All other agency banking needs

Primary Responsibilities

Two primary responsibilities of the Banking Services Division of the Maryland State Treasurer’s Office are the accurate and timely recordation of State funds, and the reconciliation of the State’s bank accounts to the State’s R*STARS accounting system. The Division must account for the receipt of all warranted deposits and the disbursement of all warranted payments. The Division’s comprehensive daily cash reconciliation allows the Treasurer’s Office to be proactive in identifying and solving agency banking issues. As volume and transaction numbers increase, the processes and controls developed by the Banking Division continue to result in a timely, accurate, and completely documented reconciliation of the State’s cash accounts. Maintaining pace with changes in the banking environment also necessitates continual refinement of the reconciliation processes and ensures maximum efficiency in the balancing of bank information and the R*STARS accounting system.

On behalf of State agencies, the Banking Services Division performs daily operations functions that are critical to the movement of funds into and out of the State’s bank accounts. These include:

  • Processing the drawdown of funds from federal programs and grants
  • Initiating FedWire payments
  • Initiating and managing foreign currency transactions
  • Processing check stop payments, cancellations, and reissues as well as requests for photocopies of paid checks
  • Providing transaction research assistance to State agencies
  • Managing the Unpresented Check Fund and the Undeliverable Check Fund
  • Processing of all bank adjustments

Total Receipts and Disbursements

The Division ensures protection of State funds on deposit through monitoring of account and collateral balances.

 

Section §6-209 of the State Finance and Procurement Article (SFP) of the Annotated Code of Maryland requires that State money on deposit with financial institutions must have collateral pledged to the State that equals or exceeds the amount on deposit not covered by the Federal Deposit Insurance Corporation. The collateral must be held by a third party custodian and be of the types enumerated in §6-202 of SFP.

 

The Banking Services Division monitors collateral for over 1200 depository, disbursement, and registered agency working funds accounts, many of which are used for trust and escrow account services. Account balance and collateral data is submitted monthly by financial institutions and custodians and is entered into an automated collateral monitoring system. The data is analyzed to ensure that the pledged collateral is sufficient to cover the applicable bank balances. If the collateral is insufficient, the financial institution is required to increase the collateral. The collateral reported by the custodian must match the collateral reported by the financial institution.

 

Banking Services serves as the State’s authority for the development, control, and maintenance of statewide policies and procedures for banking products and services.

 

The Division makes every effort to remain at the forefront of the constant changes in banking products and services offered. The Division will continue to explore new financial products and improved data delivery methods that will increase its capabilities to provide efficient cost-saving banking services to the Maryland State agencies in response to operating agency and taxpayer needs. In the current tenuous financial environment, the Division’s priority must be to enhance the ability to recover in the event of a disaster and to change banks if required by market conditions or the procurement process. In addition, the Division must anticipate the future banking needs of the State to maintain its capacity to contain costs while accommodating the growth, diversity, and complexity of banking transactions.

 

It is the overall mission of the Banking Services Division to provide efficient, accurate, and timely banking services to all State agencies and external customers.

Designated State Depositories

Click here

Services for the following list of designated State depositories have been established under Agency depository contracts. Additional services cannot be added without prior written approval from the State Treasurer’s Office.

Click here to see banks, their fee schedule, and contact information.

Agency Depository Account Submission Instructions

Agency Designated Depository Contract – March 2023

Collateral Security Agreement

 

Related Sections of the Annotated Code of Maryland

Section 6-201 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-202 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-205 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-206 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-209 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-210 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-212 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-222 of the Annotated Code of Maryland – State Finance and Procurement
Section 6-229 of the Annotated Code of Maryland – State Finance and Procurement

Guidelines

Depositary Agreement

We are developing an online portal to streamline the process of setting up new agency accounts. In the meantime, please complete this temporary PDF form. To ensure the security of your sensitive information, please only fax the completed form to us at (410) 974-2076 or send via regular mail to the address listed below. We apologize for the inconvenience and appreciate your patience as we transition to the new online system. 

 

Maryland State Treasurer’s Office 

Banking Services

80 Calvert Street

Annapolis, MD 21401

New Agency Account Form

Lockbox Banking Services

Solicitation Number:

RFP #LB-10192023

Title:

Lockbox Banking Services

Issue Date:

10/19/2023

Proposals Due: 

12/12/2023

Award Date:

 

Documents:

Solicitation Letter

Financial Proposal Form

Amendment

Amendment #2

Questions & Answers #1

Questions & Answers #2 (2 of 2)

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