FDIC Releases Final De Novo Handbook

The FDIC today released the final version of its long-awaited handbook to help de novo banks apply for deposit insurance. The handbook provides information to new bank organizers on pre-filing activities, the de novo application process and pre-opening activities. While it does not establish new policy or guidance or modify existing guidance, the handbook provides greater transparency on the FDIC’s review and approval process. The FDIC previously requested feedback on a draft of the handbook, and the final version incorporates clarifications sought by commenters, the agency said.

De novo banks have been scarce in the years since the financial crisis, though de novo activity began to pick up toward the end of 2016. The release of the handbook is the latest in a series of FDIC actions intended to encourage new bank charters. Previously, the FDIC said that it would reduce the de novo period from seven years to three years, updated its guidance on regulatory expectations for new banks and hosted information sessions to help prospective institutions better understand how to apply for deposit insurance.

ABA has long advocated for regulators to do more to spur de novo formation and will continue to engage with the FDIC and other agencies to support the formation of new banks. For more information, contact ABA’s Shaun Kern.