A newly chartered bank for Columbus, Ohio — which will focus on financial products for businesses and individuals in the technology, payment systems, investment, and defense industries, including virtual currency market participants — was approved for federal deposit insurance Tuesday, the federal bank deposit insurance agency said.
According to the Federal Deposit Insurance Corp. (FDIC) Erebor Bank, N.A., received its conditional approval for its charter from the Office of the Comptroller of the Currency (OCC) on Oct. 15. However, there is a time limit on the deposit insurance: the FDIC said its approval for Erebor Bank will expire if the bank is not established within 12 months. However, the agency could extend the time limit, it noted.
There are also conditions for the bank to meet, although routine. The FDIC said that, among other conditions, the new bank must implement protocols to comply with the agency’s regulations regarding processing of deposit accounts in the event of a bank failure and to maintain a minimum 12% tier 1 leverage ratio during its first three years of operation.
Also, in the event it ceases to be considered “well capitalized” or falls below the minimum capital levels required by the OCC, its primary federal regulator, the bank must exercise its rights under its Capital Call Agreement to obtain at minimum the amount of capital necessary to be considered “well capitalized.”
FDIC Approves the Deposit Insurance Application for Erebor Bank, N.A., Columbus, Ohio