The Federal Financial Institutions Examination Council this week released a statement reaffirming its members’ commitment to promoting de novo bank formation by exploring ways to lower regulatory barriers to creating new financial institutions.
The FFIEC is an interagency body consisting of the federal banking agencies, the Consumer Financial Protection Bureau and representatives from state banking agencies. In its statement, the FFIEC noted that the number of de novo bank formations has “stagnated” since the 2008 financial crisis, contributing to the shrinking number of depository institutions in the U.S.
“Further, based on industry feedback, the FFIEC member entities understand that unnecessary delays, costs or unpredictability in application processes may discourage potential organizers from seeking to form new depository institutions,” the council said.
FFIEC members are seeking to streamline the application process within statutory requirements and provide greater transparency to applicants on expectations and timelines, the council said. They welcomed prospective applicants to reach out to key regulator contacts in their regions, districts or states.
“The FFIEC member entities plan to continue efforts to address regulatory burden and obstacles to promote new depository institution formation as de novos serve a vital role in maintaining a robust and diversified financial system,” the council said.
