Site Name

Bank Bryan Cave

De Novo Banks

Main Content

OCC Moves Forward on Fintech Bank Charters

March 16, 2017

Authors

Dan Wheeler and Jonathan Hightower

OCC Moves Forward on Fintech Bank Charters

March 16, 2017

by: Dan Wheeler and Jonathan Hightower

Amid criticism from virtually every possible constituency, on March 15, 2017, the Office of the Comptroller of the Currency (OCC) released a draft supplement  to its chartering licensing manual related to special purpose national banks leveraging financial technology, or fintech banks. As we indicated in our fintech webinar discussing the proposal last December, the OCC is proposing to apply many conventional requirements for new banks to the fintech charter. While the OCC’s approach is familiar to those of us well versed on the formation of new banks, there are a few interesting items of note to take away from the draft supplement.

  • More bank than technology firm. Potential applicants for a fintech charter should approach the project with the mindset that they are applying to become a bank using technology
    Read More

Starting a New Bank

December 5, 2016

Authors

Jonathan Hightower

Starting a New Bank

December 5, 2016

by: Jonathan Hightower

piggybankOn November 29, 2016, the FDIC, as part of its Community Banking Initiative, held an outreach meeting in Atlanta.  While the FDIC has indicated that it will publish a handbook regarding applications for deposit insurance in the coming weeks (which we’ll also summarize), we thought it made sense to provide a few highlights from that meeting:

Mechanics.  The mechanics of the chartering process are the same as before.

Business Plans.  As expected, there will be greater scrutiny on business plans, making sure that banks stick to their business plans post-opening, and (not expressly stated but as translated by me) ensuring that the results of the bank’s business plan do not deviate greatly from the original projections (i.e., providing for limited ability to take advantage of natural growth in the new bank’s markets or lines

Read More

12 Questions You Need to Answer Before Starting a New Bank

November 4, 2016

Authors

Robert Klingler

12 Questions You Need to Answer Before Starting a New Bank

November 4, 2016

by: Robert Klingler

With paths recently being cleared from a regulatory perspective and the consolidation in the market, we’re hoping to see a pickup in de novo applications (and one that is far greater than the five applications the FDIC has indicated it has received for all of 2015). Because of the recent history of difficulty starting new banks and the extremely limited number of applications this year, we imagine many of the qualified candidates are hesitant to take the first steps. We’d like to make the process easier for you.

In his article, “Thinking of Starting a New Bank? Answer These Questions First,” which was published in The Banking Law Journal today, my partner, Jonathan Hightower (@hightowerbanks), covers twelve questions that organizing groups and individuals should answer as they begin a venture toward a de novo bank.

Please call any member of our Financial Institutions team if you’d like to start

Read More

Is The Time Right for De Novo Banks?

January 28, 2015

Authors

Michael Shumaker

Is The Time Right for De Novo Banks?

January 28, 2015

by: Michael Shumaker

Ten years ago, business was booming for community banks—profitability driven by a hot real estate market, a wave of de novo banks receiving charters, and significant premiums paid to sellers in merger transactions. Once the community bank crisis took root in 2008, however, the same construction loans that once drove earnings caused significant losses, merger activity slowed to a trickle, and only one new bank charter has been granted since 2008. But as market conditions improve and with Federal Deposit Insurance Corporation’s (FDIC) release of a new FAQ that clarifies its guidance on charter applications, there are some indications that an increase in de novo bank activity may not be far away.

To understand the absence of new bank charters in the last six years, one must look to the wave of bank failures that took place between 2009 and 2011, which involved many de novo banks. Many of these

Read More
The attorneys of Bryan Cave LLP make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.