On April 6, 2016, the Federal Deposit Insurance Corporation (FDIC) rescinded Financial Institution Letter (FIL) 50-2009, titled “Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions.” In its press release announcing the rescission, the FDIC explained that FIL 50-2009 was issued during the financial crisis when a number of newly insured institutions had either failed or been identified as problem banks. FIL 50-2009 extended the de novo period from three to seven years for newly organized, state nonmember institutions for examinations, capital maintenance, and other requirements. The FDIC notes that since issuance of FIL 50-2009, it has adopted regulations and guidance meant to strengthen all supervised institutions, as well as enhanced programming and procedures. Stated simply, it has met the supervisory objectives of FIL 50-2009.
Also on April 6, the FDIC issued FIL-24-2016, which contains supplemental guidance related to the Statement of Policy on Applications for Deposit Insurance. As background, Part 303 (Subpart B) of the FDIC Rules and Regulations (12 U.S.C. § 1815) contains the administrative procedures to apply for deposit insurance. The FDIC Statement of Policy on Applications for Deposit Insurance became effective October 1, 1998, and provides additional guidance to proposed depository institutions applying for deposit insurance. On November 20, 2014, the FDIC issued its first related Q&A, which addressed pre-filing meetings, process timelines, initial capitalization, and initial business plans of de novo institutions. The Q&A issued last week supplements the FDIC’s prior Q&A and addresses the content of an initial business plan submission, weakness the FDIC has identified in business plans, and what constitutes a material change to or deviation from a business plan. The recently released Q&A can be found here.