WASHINGTON — The Office of the Comptroller of the Currency said it is continuing efforts to encourage the formation of new banks as the agency reported receiving 40 de novo applications during the past 18 months.
In a statement, the OCC also praised the Federal Deposit Insurance Corp.’s recent changes to its deposit insurance application process, saying the move complements the OCC’s efforts to reverse a long-term decline in new bank formation.
“De novo chartering is a sign of a healthy banking system,” Comptroller of the Currency Jonathan V. Gould said. “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.”
‘Less-Dynamic’ Industry
According to the OCC, de novo chartering declined significantly during the past 15 years, contributing to what the agency described as a less dynamic and competitive banking industry.
From 2011 through 2014, the OCC received an average of fewer than four charter applications annually. In some years, the agency received no applications.
“For more than a decade, regulators signaled that those seeking a federal bank charter and federal deposit insurance need not apply,” Gould said. “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.”
The Data Points
The OCC said:
- It has received 40 de novo applications during the past 18 months, including applications for national trust banks, which the agency has chartered for decades.
- In many cases, it has made decisions on charter applications within 120 days after receiving a complete application.
- For the first time in five years, a full-service national bank has received final OCC approval and opened for business.
The agency said it intends to continue encouraging the formation of new banks as part of its efforts to strengthen the resilience of the federal banking system.
