de novo

As the number of banks continues to shrink, Fed Gov. Bowman says the US needs to find a way to encourage more startups. While some would-be de novo investors resort to buying existing banks and rebuilding them to circumvent the de novo process, Bowman advocates for revisions to de novo regulations. We discuss the logic behind each solution.

Outgoing FDIC Madam Chairman Jelena McWilliams recently discussed several milestones from her time at the FDIC on a webcast with the Bipartisan Policy Center. A few of her reflections were related to redefining loan modifications during the pandemic and establishing FDITECH. Let’s explore this progress and several other areas too.

The FDIC recently announced multiple initiatives to help streamline and clarify the application process for de novo institutions. We give you the skinny.

De novo applications and new bank launches have been trending up in 2020 and 2021. Favorable signs include rising investor confidence in new banks and government encouragement of new banks in rural and underserved areas. This year, there were nine new banks for every 100 lost, compared to only two banks for every 100 lost during the previous decade. While this is good news, is it a trend? Here is our insight.