Read more: Local, State, Economy, Politics, Missouri, Senate, Clint Zweifel, Treasurer, Missouri Bankers Association
(AP) -- JEFFERSON CITY, Mo. - The Senate has passed legislation that could put more money in Missouri's banks and garner higher returns on state deposits.
The legislation phases out a cap on the interest rate banks pay on state deposits.
Treasurer Clint Zweifel's office has said the change would allow the state to increase its deposits by about half.
Originally, banks had opposed a plan by Zweifel to remove the cap.
But the Missouri Bankers Association says gradually removing it would lessen the costs to banks during a down economy.
The legislation sponsored by Republican Sen. David Pearce, a banker from Warrensburg, would also let larger businesses and other entities apply for a state-sponsored, low-interest loan program.
After a 32-0 vote Thursday, the bill now moves to the House.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)
