OCC Says U.S. Banking System Is Again ‘Open For Business’
By CU Today Staff —
WASHINGTON — The Office of the Comptroller of the Currency said it is continuing efforts to reinvigorate de novo bank chartering, pointing to 40 applications received during the past 18 months and commending the Federal Deposit Insurance Corp. for steps to streamline its review of deposit insurance applications.
“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.”
The OCC said de novo chartering declined significantly during the past 15 years, noting that from 2011 through 2014 it received fewer than four charter applications annually on average and none in some years.
“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 agency said its 40 applications during the past 18 months include national trust bank applications and that it has made decisions in many cases within 120 days of receiving a completed application. The OCC also said a full-service national bank has received final approval and opened for business for the first time in five years as the agency continues efforts to encourage new bank formation.
Originally reported by CU Today.