The FDIC board today voted to roll back Biden-era actions on industrial banks, supervisory appeals and Community Reinvestment Act implementation. The board also introduced a proposal to streamline the agency’s approval process for new bank branches.
In a series of unanimous votes, the three-member board advanced multiple agenda items. Among them was a decision to withdraw a 2024 proposed rule to amend existing agency rules governing parent companies of industrial banks and industrial loan companies. Instead, the FDIC will issue a request for information on the issue.
The board advanced proposed rulemaking to eliminate the Supervision Appeals Review Committee and replace it with the independent Office of Supervisory Appeals. The FDIC eliminated the OSA in 2022 – not long after the office was formed as a replacement for SARC, which the American Bankers Association and others said was an ineffective vehicle for banks to challenge supervisory findings.
The board also voted to join the Federal Reserve and the Office of the Comptroller of the Currency in proposed rulemaking to rescind the CRA final rule adopted in 2023 and replace it with the previous CRA framework.
Finally, the board advanced proposed rulemaking to amend the approval process for new bank branches and office relocations by eliminating certain filing requirements, reducing processing timelines and revising public notice procedures. One change would shorten the approval timeline for applications under expedited processing from 21 to three business days. Other changes would nix newspaper publication requirements for applicants and eliminate all informational filing requirements except for a statement of intent and the exact location of the branch or office.
In a statement, ABA President and CEO Rob Nichols said the association appreciates the FDIC’s efforts to explore the framework surrounding supervisory appeals “and hope that any eventual reforms will lead to a more independent, fair and credible process.” He also noted that ABA, in consultation with its members, will review the other actions taken during the meeting. “We will be prepared to weigh in as appropriate,” Nichols said.
