FDIC Makes ABA-Advocated Change to Deposit Insurance Application Manual 

The FDIC today announced several changes to its Deposit Insurance Application Procedures Manual. As advocated by the American Bankers Association, the agency will now permit de novo banks to give prior notice when making any material change or deviation from their business plan within the first three years of operation, rather than requiring prior approval. The association welcomed this change by the FDIC, which will give de novo banks the flexibility they need to respond to their new customers and the market opportunities that present themselves without first obtaining regulatory permission.

The FDIC also added a supplement to the manual addressing matters related to deposit insurance proposals from applicants that are not traditional community banks, including application review processes, field investigations, evaluation of statutory factors, approval conditions and written agreements. The FDIC clarified that this supplement does not establish new policy or guidance, or modify existing policy or guidance.