FDIC Expects Economy to Spur De Novo Activity

The FDIC anticipates “an increase in chartering activity as general economic conditions continue to improve,” the agency said in response to a letter from Sen. Dean Heller (R-Nev.) questioning the agency’s effort to create a favorable environment for new de novo bank institutions. In the letter, Sen. Heller specifically requested information on possible FDIC actions that could be taken to remove regulatory barriers and compliance issues that currently deter de novo charters. He also requested that the FDIC focus on encouraging the formation of new industrial loan companies.

Among the agency’s efforts to support de novo activity, the FDIC identified a publication that will serve as a guide for the de novo application process, designated staff within regional offices to respond to proposals, outreach meetings across the country about the application process and the FDIC’s resources available to help the process, as well as a forthcoming review of the Economic Growth and Regulatory Paperwork Reduction Act. ABA has long raised concerns about the lack of new bank approvals in recent years, and strongly supports the FDIC’s recognition of improved industry conditions and commitment to fostering de novo formation.


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