On August 28, 2009, the FDIC issued a Financial Institution Letter (FIL-50-2009) enhancing supervisory procedures for newly-insured state-chartered banks that are not members of the Federal Reserve System (“newly-insured banks”) by extending the de novo period from the current three-year period to seven years for examinations, capital and other requirements. In addition, newly-insured banks will be required to obtain the prior approval of the FDIC for material changes in business plans during the first seven years of operation. These changes will allow the FDIC to more closely monitor the activities and operations of de novo banks for a longer time. De novo institutions that are subsidiaries of existing “eligible” holding companies generally will be excluded from these procedures.