US Regulators Speed Reviews as New Bank Applications Rise

The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation play central roles in reviewing US bank charters and deposit insurance applications. New bank formation remained subdued for years after the global financial crisis, limiting fresh competition in some markets. Regulators are now seeking to encourage more entrants, arguing that a clearer and faster approval process could expand access to financial services and inject new momentum into the banking industry.

The OCC said it received 40 new bank applications over the past 18 months, signaling renewed interest in forming lenders. The FDIC has also introduced a two-stage review process aimed at improving the efficiency and predictability of applications. Under the new framework, the agency targets conditional approval within 120 days after receiving a complete application, while outstanding requirements are addressed in a subsequent stage, potentially shortening the time needed for organizers to launch a bank.