For the first time in more than 80 years, Kentucky state government is depositing its receipts in a new bank.
Earlier this year, the state awarded to JP Morgan Chase the contract to be its depository. Chase took over as the state’s new banker this week. Frankfort-based Farmer’s Bank had held the contract continuously since 1928.
Kentucky Treasurer Todd Hollenbach says Chase submitted the best of four bids submitted for the job.
“There were different ways that the contracts were rated. There were technical points, there was price. And JP Morgan Chase beat them on the price primarily,” he said.
The state’s depository handles various banking services for Kentucky government, including check-writing and payroll. Hollenbach says most citizens won’t likely notice any change.
The contract will be re-bid in two years. A Farmers Bank executive has declined to say if the loss of the contract will result in any layoffs, according to the Frankfort State-Journal.