Faster approvals of federal deposit insurance for new banks is one of the intentions behind a revised process announced Monday by the federal bank deposit insurance agency.
In a release, the Federal Deposit Insurance Corporation (FDIC) said a new, two-phase process it will use to review new deposit insurance applications would “encourage new bank formation, accelerate the speed of the review process, and improve the efficiency of the application process.”
According to the agency, the new process will give groups organizing new banks “clarity within a few months, before they expend significant time and financial resources – including on raising capital, staffing, infrastructure development and more.”
The new two-phase procedure, the agency said, will give new (or “de novo”) banks a “contingent authorization” within 120 days of receiving the application; and approval within the subsequent 12 months following the receipt of additional information and completion of key organizational steps.
“When deposit insurance applicants notify the FDIC that the institution is ready to open, the FDIC will affirm that all pre-opening conditions have been met,” the agency said.
The deposit insurer also said that it expects that in most cases applicants may file applications concurrently with both the FDIC and the chartering authority. “In addition, the FDIC will coordinate with the chartering authority throughout the application process to promote efficiency, avoid duplication, and ensure timely action,” the agency said.
FDIC Announces New Review Process for Deposit Insurance Applications
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