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US Track 1
Federal Deposit Insurance Corporation
financial services
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1754 charsFederal Deposit Insurance Corporation Implements Two-Phase Approach for Processing Deposit Insurance Applications
On August 10, 2026, the Federal Deposit Insurance Corporation (FDIC) announced revised procedures for processing federal deposit insurance (FDI) applications, effective for all applications received after August 15, 2026. The FDIC introduced a two-phase approach designed to expedite the application process while maintaining rigorous review standards for proposed insured depository institutions.
Under Phase 1, which spans 120 days from receipt of an FDI application, the FDIC will issue a contingent authorization to applicants that satisfy relevant requirements. Phase 2 follows immediately and spans up to 12 months, during which organizers complete necessary organizational steps and the FDIC issues final approval, including issuance of an FDI Order. The FDIC may complete Phase 2 more quickly depending on the facts and circumstances of each application. When applicants notify the FDIC that the institution is ready to open, the FDIC will affirm that all pre-opening conditions have been met.
The revised procedures aim to promote the vitality of the banking industry and meet community credit and financial services needs. The FDIC welcomes applications from all types of proposed insured depository institutions presenting viable business plans consistent with favorable resolution of statutory factors enumerated in Section 6 of the Federal Deposit Insurance Act. The FDIC will coordinate with chartering authorities throughout the application process to promote efficiency, avoid duplication, and ensure timely action. Applicants may generally file applications concurrently with both the FDIC and the relevant chartering authority. The FDIC staff remains available to meet with organizers and answer questions at any stage of the process.
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2864 charsUS Federal Deposit Insurance Corporation Implements Two-Phase Approach for Processing Deposit Insurance Applications
On August 10, 2026, the Federal Deposit Insurance Corporation (FDIC) announced revised procedures for processing federal deposit insurance (FDI) applications, implementing a new two-phase approach to promote timely processing and reduce regulatory burden on de novo applicants. According to the FDIC press release , the reforms aim to help promote the strength of the banking industry and meet the credit, deposit, and other financial services needs of communities across the United States. The two-phase approach will apply to all FDI applications received after August 15, 2026.
Key features of the two-phase approach include:
Phase 1- Contingent Authorization: The FDIC will issue a contingent authorization letter within 120 days of receiving a complete FDI application. Applicants must submit a comprehensive business plan, three-year financial projections, ownership structure, capital raise details, biographical and financial reports for proposed directors and officers, copies of related applications to other regulatory agencies, a description of any planned business relationships involving the institution and its parent company, affiliates, or insiders, and a list of functions/services to be outsourced versus performed internally.
Phase 2- Final Approval: Following contingent authorization, the FDIC will issue final approval within 12 months. Organizers must complete all organizational steps, including finalizing board and senior executive appointments, employment agreements, compensation plans, capital raise, organizational documents, third-party vendor agreements, and risk management and compliance policies. FDIC staff performs additional background checks and completes prior checks.
Final approval and pre-opening conditions: FDIC staff will meet with organizers to discuss remaining pre-opening conditions (including prior notification of the planned opening date), seek the applicant's written agreement to proposed conditions for the FDI Order, and issue a transmittal letter communicating final disposition, including an Order and Statement.
Concurrent filing and coordination: Applicants may file concurrently with the FDIC and chartering authority. The FDIC will coordinate with the chartering authority throughout the process to promote efficiency and avoid duplication.
Pre-opening examination: Within 6 months from approval, a pre-opening examination will be completed 30 days before the institution's proposed opening, followed by issuance of a deposit insurance certificate.
The FDIC noted that it welcomes applications from all types of proposed insured depository institutions that can present a viable business plan consistent with favorable resolution of the statutory factors under Section 6 of the Federal Deposit Insurance Act. The revised procedures apply to all FDI applications received after August 15, 2026.