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FDIC Proposes Guidance on Deposit Insurance Applications

On July 10, 2017, the FDIC published for comment a handbook on deposit insurance applications, Deposit Insurance Applications: Procedures Manual.  The manual covers each step in the application process: pre-filing activities, application receipt, review and acceptance, application processing, pre-opening activities and post-opening considerations.  The FDIC has two audiences and purposes in issuing the manual.  For potential bank organizers, the manual provides greater clarity of the application process.  For FDIC staff, the manual sets forth comprehensive guidance on handling applications. The FDIC is seeking input specifically on how well the manual helps bank organizers understand the application process. The release of the manual reflects the FDIC’s renewed interest in de novo banks.  In the words of Chairman Gruenberg, the manual “extends the FDIC’s efforts to work with any group interested in organizing a new bank.”  On May 1, 2017, the agency released a handbook on deposit insurance for de novo organizers. Whether changes to the de novo bank process may be forthcoming in light of the Treasury Department’s recent report on regulatory reform for the banking industry is uncertain.   The report recommended a “critical review” of the capital requirements for de novo banks and “significantly streamlin[ing]” of the application process.  The manual does not (and was not designed) to include new rules or policies. When or how the FDIC addresses the Treasury Department’s suggestions remains to be seen. The comment period on the manual ends on September 8, 2017.

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About this Author

Dwight C. Smith III, Covington, Banking regulation Lawyer, thrift organizations attorney
Of Counsel

Dwight Smith’s practice focuses on bank regulatory and compliance, corporate, and consumer finance matters. His clients include bank and thrift organizations of all sizes across the country, as well as nonbanks that provide financial products and services, such as alternative lenders and payment processors.

Mr. Smith has advised clients on new duties and obligations arising from the government's response to the financial crisis, including the Dodd-Frank Act, new capital requirements, the response to the too-big-to-fail phenomenon and changes in...

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