FDIC issues supplement to deposit insurance procedures, focuses on non-traditional bank proposals

“Complex” or “unique” deposit insurance proposals are addressed in a supplement to the federal bank deposit insurer’s application procedures manual released Monday.

The supplement to the Federal Deposit Insurance Corp.’s (FDIC) Deposit Insurance Application Procedures Manual addresses deposit insurance applications from applicants that are not traditional community banks, the agency said in a Financial Institution Letter (FIL) announcing the changes. It includes definitions of the terms “non-bank” and “non-community bank” and covers application review processes, field investigations, evaluation of the statutory factors, approval conditions, and written agreements. The supplement does not establish new policy or guidance, or modify existing policy or guidance, the letter says.

The FDIC on Monday also released updated versions of the procedures manual itself and the publication titled Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions. The updates are primarily made up of technical edits and clarifications, the agency said.

“In response to industry feedback, the FDIC has modified its commonly imposed conditions requiring prior approval of business plan changes, to instead require prior notice in most cases,” the agency said.

Together, the above-noted publications “cover matters pertinent to all types of deposit insurance applications, including pre-filing activities, the application process, and pre-opening efforts,” it said.

FDIC-8-2020