FDIC announces updated process for deposit insurnance applications

The Federal Deposit Insurance Corporation announced a new two-phase process for reviewing applications for federal deposit insurance. The revised procedures are intended to accelerate the review process, provide greater certainty for organizing groups, and encourage the formation of new banks.

“Improving the de novo process and encouraging more new bank formation has been a key priority for the FDIC,” said FDIC Chairman Travis Hill. “Today’s action is one of several steps the FDIC has been working on in furtherance of this goal. A healthy pipeline of new entrants is critical to the long-term vitality of the banking sector, particularly for community banks.”

TBA CEO and President Chris Furlow stated, “We appreciate Chairman Hill and the FDIC for taking meaningful steps to streamline the application process and encourage the formation of new community banks. Providing prospective de novo banks with greater certainty and transparency earlier in the process will help reduce unnecessary costs and make it easier for them to begin serving their communities.” Furlow continued, “A healthy pipeline of new banks is essential to preserving competition, expanding access to credit, and ensuring the continued strength of community banking.”

Under the new process, the FDIC will seek to provide contingent authorization to applicants who satisfy the relevant requirements within 120 days of receiving an application. Applicants will then have up to 12 months to submit any remaining information and complete the necessary organizational steps before receiving final approval and a deposit insurance order. This second phase may be completed sooner, depending on the circumstances of the application.

Once organizers notify the FDIC that the institution is ready to open, the agency will confirm that all pre-opening conditions have been met. In most cases, applicants may file concurrently with the FDIC and the appropriate chartering authority. The FDIC will coordinate with the chartering authority throughout the process to improve efficiency, avoid duplication, and ensure timely action.

The revised process will apply to all federal deposit insurance applications received after August 15, 2026.