OCC Commends FDIC Reform, Advances Priority to Reinvigorate De Novo Chartering

New FDIC process to review deposit insurance applications aligns with OCC efforts

WASHINGTON-The Office of the Comptroller of the Currency continues to prioritize reinvigorating de novo chartering to build a robust, diverse banking system that supports the U.S. economy and commends the Federal Deposit Insurance Corporation for its recent efforts to do the same.

"De novo chartering is a sign of a healthy banking system," said Comptroller of the Currency Jonathan V. Gould. "The FDIC's new process to review deposit insurance applications aligns with the OCC's efforts to reverse the decline in de novo chartering by providing a clear and transparent application process that encourages new entrants to the banking system - which drive innovation and expand consumer choice."

Over the past 15 years, de novo chartering declined significantly, contributing to a less dynamic and competitive banking industry. From 2011 through 2014, for example, the OCC received an average of less than four charter applications per year. In some years, the OCC received no charter applications.

"For more than a decade, regulators signaled that those seeking a federal bank charter and federal deposit insurance need not apply," added Comptroller Gould. "Entities that engage in legally permissible activities, including those involving digital assets and other novel technologies, should have a path to becoming a national bank. America and the OCC are once again open for business."

In the last 18 months, the OCC has received 40 de novo applications, including applications for national trust banks, which the OCC has chartered for decades. In many cases, the OCC has made decisions on charter applications within 120 days of receipt of the complete application. As a result, for the first time in five years, a full-service national bank has already received the OCC's final approval and opened its doors.

The OCC will continue to encourage the formation of new banks and strengthen the resilience of the federal banking system.

Related Link

• De Novo Bank Charters Fact Sheet (PDF)