The FDIC over the past few years has taken meaningful steps to facilitate and promote the formation of de novo banks. Late last week, the agency made several significant moves to bolster that effort. In separate actions, the FDIC:

• issued a request for information seeking comments on how to improve the deposit insurance application process;
• issued an update to its publication entitled Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions and issued its Deposit Insurance Applications Procedures Manual in final form;
• established a process to allow prospective organizers the option to request FDIC review of a draft deposit insurance proposal prior to filing an official application; and
• republished its timeframe guidelines for processing deposit insurance applications for de novo banks and other filings.

These actions leave little doubt that regulatory conditions are more receptive to bank startups than at any time since the financial crisis, which should be welcome news for interested organizers and investors. For more information on the application process, including our own experiences, see our recent article De Novo Banks on the Rise.