OCC’s Noreika Clarifies Views on De Novo Deposit Insurance

Acting Comptroller of the Currency Keith Noreika provided additional clarity about his views on the deposit insurance application process for de novo banks in a letter to the American Bankers Association today. Noreika recently made headlines arguing that de novo national banks and federal thrifts should be able to be granted deposit insurance upon approval of an OCC charter without having to make a separate application to the FDIC.

In response to an ABA letter seeking further clarity, Noreika said he envisions that the same treatment would apply to state-chartered banks, not just federal charter applicants. He added that he also envisions that deposit insurance would be automatically granted upon approval of a charter, unless the FDIC objects within a specific timeframe and provides written reasons for its objection.

“This approach would reduce the uncertainty and paperwork burden for applicants and create a clearer timeline for a final decision,” Noreika said. “A more streamlined process would help de novo banks project startup costs and timing, which are critical for companies raising capital and kicking off a new business.”