The Federal Deposit Insurance Corporation (FDIC) announced last week multiple initiatives and resources designed to enhance the deposit insurance application process.
“A pipeline of new banks is critical to the long-term health of the industry and communities across the country,” FDIC Chairman Jelena McWilliams said. “The application process should not be overly burdensome and should not deter prospective banks from applying. The FDIC wants to see more de novo banks, and we are hard at work to make this a reality.”
The FDIC is seeking comment from interested parties on all aspects of the deposit insurance application process.
Through a Request for Information, the agency is soliciting feedback on a number of topics, including ways in which the FDIC could or should support the continuing evolution of emerging technology and Fintech companies as well as aspects of the application process that may discourage potential applications. The request also includes commentary on possible changes to the application process for traditional community bank proposals, and other suggestions for improving the effectiveness, efficiency, or transparency of the application process.
The FDIC has established a voluntary process giving new institution organizers the option of requesting feedback on a draft deposit insurance proposal before filing a formal application while two additional initiatives related to the processing of all applications submitted to the FDIC.
The FDIC has updated and is re-publishing its timeframe guidelines for applications, which are available on the agency’s website.