FDIC Responds To Concerns Over Bank Formations, Need For De Novo Policy Changes

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On December 30, the FDIC responded to a recent joint letter from the AABD and ICBA expressing concern with the lack of new bank charters and proposing policy reforms to encourage more de novo applications. As the trade groups pointed out, the FDIC has only approved deposit insurance for one de novo bank since 2011, a dramatic shift from many years of de novo bank formation averaging over 170 per year. FDIC Director Doreen Eberley acknowledged the concern, but defended FDIC policy and cited cyclical conditions as a potential explanation for the current situation rather than any FDIC policy change. Ms. Eberley reasserted the FDIC’s commitment to assisting with potential de novo community bank formations.