FRB: Supervisory Letter SR 08-5 on Processing of De Novo Bank Membership Applications -- July 10, 2008

BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D. C. 20551

DIVISION OF BANKING
SUPERVISION AND REGULATION

SR 08-5
July 10, 2008

TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK

SUBJECT: Processing of De Novo Bank Membership Applications

The Federal Reserve is streamlining the application process for de novo banks¹ and enhancing coordination with other banking supervisory agencies in that process. The revisions to the application process for de novo banks include:

Allowing organizers of a de novo state bank to file for membership with the Federal Reserve simultaneously with filing the Interagency Charter and Federal Deposit Insurance Application form with the state banking agency and the Federal Deposit Insurance Corporation (FDIC);
Increasing coordination with the FDIC and the state banking agency to avoid duplicate requests for information; and
Encouraging applicants to submit certain "name-check" process information for use by the Federal Reserve at the same time that it is submitted to the banking agency.

Going forward, Reserve Bank staff should advise organizers of state-chartered banks to submit the Federal Reserve membership application form² and the Interagency Charter and Federal Deposit Insurance Application form³ to the responsible Reserve Bank simultaneously.

In order to further reduce regulatory burden, System staff will coordinate with the FDIC and the state banking agency to ensure that applicants do not receive duplicate requests for information. However, System staff should continue to request additional information when information needed to analyze the factors that the Federal Reserve must consider is not being sought by other regulators.

In the past, because of the different name check processes of the Federal Reserve, FDIC, and relevant state banking authorities, applicants often had to make multiple trips to complete fingerprint cards for each banking agency. In order to alleviate this burden, the responsible Reserve Bank should coordinate with the other agencies to enable individuals to have all fingerprint cards made at the same time.

Questions regarding this guidance may be directed to Lisa DeFerrari, Assistant Director, Applications, at (202) 452-3893, or Robert Brooks, Supervisory Financial Analyst, Domestic Applications, at (202) 452-3103. In addition, questions may be sent via the Board's public website.⁴

Roger T. Cole
Director

Cross Reference: SR 91-17, "Application and Supervision Standards for De Novo State Member Banks"

Notes:

For a definition of a de novo bank, see SR letter 91-17, "Application and Supervision Standards for De Novo State Member Banks." Return to text
The Federal Reserve membership application form (FR 2083/A/B/C) can be downloaded from the website of the Board of Governors of the Federal Reserve at: http://www.federalreserve.gov/reportforms/ReportDetail.cfm?WhichFormId=FR_2083/A/B/C&WhichCategory=2 Return to text
The Interagency Charter and Federal Deposit Insurance Application form (FDIC 3064-0001) and other interagency administrative forms can be downloaded from the FDIC website at: http://www.fdic.gov/regulations/laws/forms/index.html Return to text
See http://www.federalreserve.gov/feedback.cfm. Return to text

SR letters | 2008

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