ICBA strongly supports today’s FDIC announcement that it will reduce from seven years to three years the period of heightened supervisory monitoring of newly formed banks, or de novo institutions.
Washington, DC (PRWEB) April 06, 2016
Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on the FDIC’s new policy for de novo bank charters.
“ICBA strongly supports today’s FDIC announcement that it will reduce from seven years to three years the period of heightened supervisory monitoring of newly formed banks, or de novo institutions. As FDIC Chairman Martin Gruenberg said, the ICBA-advocated three-year period is much more appropriate and sensible in the current banking environment.
“ICBA has been deeply concerned about the lack of de novo bank applications, with regulators approving just two de novos since 2011 compared with an average of 100 new banks formed per year since 1990, according to the Federal Reserve Bank of Richmond. In letters and meetings, ICBA has strongly urged the FDIC to review its practices and return to the three-year de novo review policy to ensure it is not unnecessarily inhibiting new bank formation.
“Because access to community banking services is essential to communities across the nation—with one in three U.S. counties depending on community banks for mainstream banking services—regulatory burdens should not restrict de novo formation. ICBA looks forward to continuing to work with the FDIC, other banking agencies and Congress to implement additional reforms that will relieve the excessive regulatory burdens on community banks and encourage new community bank applications.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.
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