Request for Information on the FDIC's Deposit Insurance Application Process, 63868-63869 [2018-26811]
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63868
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
FEDERAL DEPOSIT INSURANCE
CORPORATION
RIN 3064–ZA03
Request for Information on the FDIC’s
Deposit Insurance Application Process
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for
information.
AGENCY:
The FDIC is seeking comment
from interested parties regarding the
FDIC’s deposit insurance application
process.
SUMMARY:
Comments must be received by
February 11, 2019.
ADDRESSES: You may submit comments,
identified by RIN 3064–ZA03, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the Agency website.
• Email: Comments@fdic.gov. Include
the RIN 3064–ZA03 in the subject line
of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
• Hand Delivery: Comments may be
hand-delivered to the guard station at
the rear of the 550 17th Street NW,
building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
Instructions: All comments received
must include the agency name and RIN
3064–ZA03 for this request for
information. All comments received
will be posted without change to https://
www.fdic.gov/regulations/laws/federal/
—including any personal information
provided—for public inspection. Paper
copies of public comments may be
ordered from the FDIC Public
Information Center, 3501 North Fairfax
Drive, Room E–1002, Arlington, VA
22226, or by telephone at (877) 275–
3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
RMS Contacts: Donald Hamm, Special
Advisor, (202) 898–3528, DHamm@
FDIC.gov.
Legal Contacts: Annmarie Boyd,
Counsel, (202) 898–3714, ABoyd@
FDIC.gov; Catherine Topping, Counsel,
(202) 898–3975, CTopping@FDIC.gov.
SUPPLEMENTARY INFORMATION:
amozie on DSK3GDR082PROD with NOTICES1
DATES:
Background
The FDIC is responsible for
maintaining stability and public
confidence in the nation’s financial
system by insuring deposits, examining
and supervising financial institutions
VerDate Sep<11>2014
18:39 Dec 11, 2018
Jkt 247001
for safety and soundness and consumer
protection, making large and complex
financial institutions resolvable, and
managing receiverships. As part of this
mission, the FDIC grants deposit
insurance to newly formed institutions
and to operating institutions that are not
currently insured.
Section 5 of the Federal Deposit
Insurance Act (FDI Act), 12 U.S.C.
1815(a), requires any proposed
depository institution seeking federal
deposit insurance to file an application
with the FDIC. In every case, the FDIC’s
review considers the statutory factors
enumerated in Section 6 of the FDI Act,
12 U.S.C. 1816:
• The institution’s financial history
and condition,
• The adequacy of the institution’s
capital structure,
• The institution’s future earnings
prospects,
• The general character and fitness of
the management of the institution,
• The risk presented by the
institution to the Deposit Insurance
Fund,
• The convenience and needs of the
community to be served by the
institution, and
• Whether the institution’s corporate
powers are consistent with the purposes
of the FDI Act.
In general, the FDIC applies the same
processes to the review of each deposit
insurance application. However,
because applications present a wide
range of structures, strategies, and
business models, each review focuses
on the facts and circumstances
presented in the application.
Overview of Request for Information
Within the context of the existing
statutory framework, the FDIC is seeking
comments regarding the deposit
insurance application process,
including with respect to the
transparency and efficiency of the
process, and any unnecessary burdens
that have become a part of the process.
The FDIC encourages comments from all
interested members of the public,
including but not limited to insured
depository institutions, other financial
institutions or companies, individual
depositors and consumers, consumer
groups, and other interested
stakeholders.
Summary of the Deposit Insurance
Application Process
The FDIC follows an established
review process that is applied to all
types of deposit insurance applications
in order to inform the public and assure
the fair treatment of all applicants. In
broad terms, the deposit insurance
PO 00000
Frm 00044
Fmt 4703
Sfmt 4703
application process includes pre-filing
activities, application submission, and
the FDIC’s application review and
processing.
The primary objective of the review
process is to consider whether the
proposed institution satisfies the
statutory requirements. In general,
deposit insurance will be granted if the
FDIC is able to find favorably on each
of the statutory factors, plus the
considerations required by the National
Historic Preservation Act and the
National Environmental Policy Act.
The pre-filing activities generally
include the earliest steps in a proposed
institution’s formation. These steps
primarily involve identifying organizers,
directors, and key officers; developing
the business plan; determining the
appropriate amount of capital to be
raised; and engaging in one or more prefiling meetings with staff from the FDIC
and other relevant agencies. The FDIC
also announced that organizers may
obtain the FDIC’s feedback on a draft
deposit insurance proposal during the
pre-filing period.
Following submission of an
application, the FDIC will conduct an
initial review to determine whether the
application is substantially complete. If
the application is substantially
complete, the FDIC will accept the
application for processing and, in
coordination with the other relevant
state and federal agencies, complete a
detailed review of the application that
includes a field investigation.
Depending on the application’s
characteristics and the findings with
regard to the statutory factors, authority
to act may reside at the Regional Office
level, or may transfer to the FDIC’s
Washington Office or Board of Directors.
Although the FDIC’s processing time
will vary depending on the unique
characteristics of each proposal, the
FDIC strives to act on applications
within four months after being accepted
as substantially complete.
The FDIC has provided a number of
resources, accessible through the FDIC’s
website, to aid organizers and other
interested parties in understanding the
application process. A list of these
resources can be found in Appendix A.1
Request for Comment
The FDIC seeks comments from
interested parties on all aspects of the
deposit insurance application process,
including guidance and other issuances,
the steps in the application process, and
1 The FDIC provides resources related to
applications for deposit insurance on its public
website. See https://www.fdic.gov/regulations/
applications/depositinsurance/.
E:\FR\FM\12DEN1.SGM
12DEN1
amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
communications with applicants, other
interested parties, and the general
public. In addition to any general
comments, the FDIC invites comments
in response to the more specific topics
and questions presented below. We
encourage commenters to be as specific
as possible.
1. What steps, if any, can the FDIC
take to improve the de novo application
process?
2. Are there any specific aspects or
components of the application process
that particularly discourage potential
applicants from initiating or completing
the application process?
3. Are there ways the FDIC could or
should update or supplement existing
resources to clarify expectations and
promote a more transparent application
process? If so, please provide details
and support.
4. Are there any aspects of the prefiling process, including with respect to
the newly announced process regarding
draft deposit insurance proposals, that
could be modified or enhanced to
further clarify expectations or processes
for prospective applicants and improve
applicants’ ability to submit a
substantially complete application?
5. How effective is the application
form and its related instructions? Could
any elements of the form or instructions
be modified or enhanced to improve
applicants’ ability to submit a
substantially complete application?
6. Are there any aspects of the field
investigation process that could be
improved to better facilitate completion
of the application process?
7. In what ways could or should the
FDIC modify the application process for
proposed traditional community banks?
How would any suggested changes
impact the evaluation of the statutory
factors?
8. In what ways could or should the
FDIC modify the application process for
proposed institutions that are not
traditional community banks? How
would any suggested changes impact
the evaluation of the statutory factors?
9. Are there ways the FDIC could or
should tailor its evaluation of
applications from proposed institutions
that are not traditional community
banks, consistent with the statutory
factors as described in the FDIC
Statement of Policy on Applications for
Deposit Insurance (SOP)? If so, please
explain.
10. Are there ways the FDIC could or
should support the continuing evolution
of emerging technology and fintech
companies as part of its application
review process? Are there particular
risks associated with any such
VerDate Sep<11>2014
18:39 Dec 11, 2018
Jkt 247001
proposals, and, if so, are there ways
such risks could or should be mitigated?
11. Are the FDIC’s expectations (as
provided by the FDIC resources
identified in this RFI) regarding capital
adequacy and liquidity/funding for
prospective applicants sufficiently clear
and understandable? If not, what
additional information or clarifications
could the FDIC provide?
12. Are there legal, regulatory,
economic, technological, or other factors
separate from the application process
that discourage potential applicants
from submitting applications for deposit
insurance that the FDIC should be aware
of? If so, are there steps the FDIC could
or should take to mitigate the impact of
such factors?
13. Are there any other suggestions
that the FDIC should consider for
improving the effectiveness, efficiency,
or transparency of the application
process, or for addressing any other
interests or concerns of stakeholders
relative to the application process?
Appendix A—Resources
The following resources are accessible
through the FDIC’s public website (https://
www.fdic.gov/regulations/applications/
resources/). The resources aid organizers and
other interested parties in understanding the
application process.
• Part 303 of the FDIC Rules and
Regulations, which outlines procedures for
the submission and review of applications,
including applications for deposit insurance.
• The Interagency Charter and Federal
Deposit Insurance Application Form, which
requests the information the chartering
authority and FDIC need to evaluate the
application. The application form provides
general instructions, specific information
fields, supplemental guidelines for business
plans, and a template for financial schedules.
• The SOP, which informs the process by
which FDIC staff evaluate the statutory
factors described above.
• Questions and answers related to the
SOP, issued on November 20, 2014, and on
April 6, 2016, to help clarify expectations for
applicants in developing deposit insurance
proposals.
• The Deposit Insurance Applications—A
Handbook for Organizers of De Novo
Institutions (Handbook), which was issued
for public comment on December 22, 2016,
and issued in final form on May 1, 2017. The
Handbook is designed to help organizers
become familiar with the deposit insurance
application process and the path to obtaining
deposit insurance.
• The Deposit Insurance Applications
Procedures Manual (Manual) was issued for
public comment on July 10, 2017, and
provides guidance for FDIC staff in the
review and processing of deposit insurance
applications. The Manual was issued in final
form on November 1, 2018.
Dated at Washington, DC, on December 6,
2018.
PO 00000
Frm 00045
Fmt 4703
Sfmt 4703
63869
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018–26811 Filed 12–11–18; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL MARITIME COMMISSION
Notice of Agreements Filed
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreements to the Secretary by
email at Secretary@fmc.gov, or by mail,
Federal Maritime Commission,
Washington, DC 20573, within twelve
days of the date this notice appears in
the Federal Register. Copies of
agreements are available through the
Commission’s website (www.fmc.gov) or
by contacting the Office of Agreements
at (202)–523–5793 or tradeanalysis@
fmc.gov.
Agreement No.: 012274–001.
Agreement Name: OVSA/PIL Space
Charter and Cooperative Working
Agreement.
Parties: Hamburg Sud; Hapag Lloyd
AG; CMA CGM S.A. and ANL Singapore
Pte Ltd. (acting as a single party); and
Pacific International Lines (Pte) Ltd.
Filing Party: Wayne Rohde; Cozen
O’Connor.
Synopsis: The amendment deletes
Hamburg Sud and replaces it with
Maersk Line A/S, and deletes CMA
CCM S.A. as a party to the Agreement.
The amendment also revises the amount
of space to be chartered, and adds
operational and legal compliance
provisions.
Proposed Effective Date: 1/18/2019.
Location: https://fmcinet/
Fmc.Agreements.Web/Public/
AgreementHistory/133.
Agreement No.: 201272–001.
Agreement Name: Kyowa/CNCo
Pacific-Asia Slot Charter Agreement.
Parties: Kyowa Shipping Co., Ltd. and
The China Navigation Co. Pte. Ltd.
Filing Party: Conte Cicala; Clyde & Co.
US LLP.
Synopsis: The amendment revises the
geographic scope of the Agreement.
Proposed Effective Date: 1/18/2019.
Location: https://fmcinet/
Fmc.Agreements.Web/Public/
AgreementHistory/16283.
Agreement No.: 201275–001.
Agreement Name: NBP/CNCo PacificAsia Slot Charter Agreement.
Parties: NYK Bulk & Project Carriers
Ltd. and The China Navigation Co. Pte.
Ltd.
Filing Party: Conte Cicala; Clyde & Co.
US LLP.
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63868-63869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26811]
[[Page 63868]]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
RIN 3064-ZA03
Request for Information on the FDIC's Deposit Insurance
Application Process
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice and request for information.
-----------------------------------------------------------------------
SUMMARY: The FDIC is seeking comment from interested parties regarding
the FDIC's deposit insurance application process.
DATES: Comments must be received by February 11, 2019.
ADDRESSES: You may submit comments, identified by RIN 3064-ZA03, by any
of the following methods:
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the Agency
website.
Email: [email protected]. Include the RIN 3064-ZA03 in the
subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
Hand Delivery: Comments may be hand-delivered to the guard
station at the rear of the 550 17th Street NW, building (located on F
Street) on business days between 7:00 a.m. and 5:00 p.m.
Instructions: All comments received must include the agency name
and RIN 3064-ZA03 for this request for information. All comments
received will be posted without change to https://www.fdic.gov/regulations/laws/federal/--including any personal information
provided--for public inspection. Paper copies of public comments may be
ordered from the FDIC Public Information Center, 3501 North Fairfax
Drive, Room E-1002, Arlington, VA 22226, or by telephone at (877) 275-
3342 or (703) 562-2200.
FOR FURTHER INFORMATION CONTACT:
RMS Contacts: Donald Hamm, Special Advisor, (202) 898-3528,
[email protected].
Legal Contacts: Annmarie Boyd, Counsel, (202) 898-3714,
[email protected]; Catherine Topping, Counsel, (202) 898-3975,
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The FDIC is responsible for maintaining stability and public
confidence in the nation's financial system by insuring deposits,
examining and supervising financial institutions for safety and
soundness and consumer protection, making large and complex financial
institutions resolvable, and managing receiverships. As part of this
mission, the FDIC grants deposit insurance to newly formed institutions
and to operating institutions that are not currently insured.
Section 5 of the Federal Deposit Insurance Act (FDI Act), 12 U.S.C.
1815(a), requires any proposed depository institution seeking federal
deposit insurance to file an application with the FDIC. In every case,
the FDIC's review considers the statutory factors enumerated in Section
6 of the FDI Act, 12 U.S.C. 1816:
The institution's financial history and condition,
The adequacy of the institution's capital structure,
The institution's future earnings prospects,
The general character and fitness of the management of the
institution,
The risk presented by the institution to the Deposit
Insurance Fund,
The convenience and needs of the community to be served by
the institution, and
Whether the institution's corporate powers are consistent
with the purposes of the FDI Act.
In general, the FDIC applies the same processes to the review of
each deposit insurance application. However, because applications
present a wide range of structures, strategies, and business models,
each review focuses on the facts and circumstances presented in the
application.
Overview of Request for Information
Within the context of the existing statutory framework, the FDIC is
seeking comments regarding the deposit insurance application process,
including with respect to the transparency and efficiency of the
process, and any unnecessary burdens that have become a part of the
process. The FDIC encourages comments from all interested members of
the public, including but not limited to insured depository
institutions, other financial institutions or companies, individual
depositors and consumers, consumer groups, and other interested
stakeholders.
Summary of the Deposit Insurance Application Process
The FDIC follows an established review process that is applied to
all types of deposit insurance applications in order to inform the
public and assure the fair treatment of all applicants. In broad terms,
the deposit insurance application process includes pre-filing
activities, application submission, and the FDIC's application review
and processing.
The primary objective of the review process is to consider whether
the proposed institution satisfies the statutory requirements. In
general, deposit insurance will be granted if the FDIC is able to find
favorably on each of the statutory factors, plus the considerations
required by the National Historic Preservation Act and the National
Environmental Policy Act.
The pre-filing activities generally include the earliest steps in a
proposed institution's formation. These steps primarily involve
identifying organizers, directors, and key officers; developing the
business plan; determining the appropriate amount of capital to be
raised; and engaging in one or more pre-filing meetings with staff from
the FDIC and other relevant agencies. The FDIC also announced that
organizers may obtain the FDIC's feedback on a draft deposit insurance
proposal during the pre-filing period.
Following submission of an application, the FDIC will conduct an
initial review to determine whether the application is substantially
complete. If the application is substantially complete, the FDIC will
accept the application for processing and, in coordination with the
other relevant state and federal agencies, complete a detailed review
of the application that includes a field investigation.
Depending on the application's characteristics and the findings
with regard to the statutory factors, authority to act may reside at
the Regional Office level, or may transfer to the FDIC's Washington
Office or Board of Directors. Although the FDIC's processing time will
vary depending on the unique characteristics of each proposal, the FDIC
strives to act on applications within four months after being accepted
as substantially complete.
The FDIC has provided a number of resources, accessible through the
FDIC's website, to aid organizers and other interested parties in
understanding the application process. A list of these resources can be
found in Appendix A.\1\
---------------------------------------------------------------------------
\1\ The FDIC provides resources related to applications for
deposit insurance on its public website. See https://www.fdic.gov/regulations/applications/depositinsurance/.
---------------------------------------------------------------------------
Request for Comment
The FDIC seeks comments from interested parties on all aspects of
the deposit insurance application process, including guidance and other
issuances, the steps in the application process, and
[[Page 63869]]
communications with applicants, other interested parties, and the
general public. In addition to any general comments, the FDIC invites
comments in response to the more specific topics and questions
presented below. We encourage commenters to be as specific as possible.
1. What steps, if any, can the FDIC take to improve the de novo
application process?
2. Are there any specific aspects or components of the application
process that particularly discourage potential applicants from
initiating or completing the application process?
3. Are there ways the FDIC could or should update or supplement
existing resources to clarify expectations and promote a more
transparent application process? If so, please provide details and
support.
4. Are there any aspects of the pre-filing process, including with
respect to the newly announced process regarding draft deposit
insurance proposals, that could be modified or enhanced to further
clarify expectations or processes for prospective applicants and
improve applicants' ability to submit a substantially complete
application?
5. How effective is the application form and its related
instructions? Could any elements of the form or instructions be
modified or enhanced to improve applicants' ability to submit a
substantially complete application?
6. Are there any aspects of the field investigation process that
could be improved to better facilitate completion of the application
process?
7. In what ways could or should the FDIC modify the application
process for proposed traditional community banks? How would any
suggested changes impact the evaluation of the statutory factors?
8. In what ways could or should the FDIC modify the application
process for proposed institutions that are not traditional community
banks? How would any suggested changes impact the evaluation of the
statutory factors?
9. Are there ways the FDIC could or should tailor its evaluation of
applications from proposed institutions that are not traditional
community banks, consistent with the statutory factors as described in
the FDIC Statement of Policy on Applications for Deposit Insurance
(SOP)? If so, please explain.
10. Are there ways the FDIC could or should support the continuing
evolution of emerging technology and fintech companies as part of its
application review process? Are there particular risks associated with
any such proposals, and, if so, are there ways such risks could or
should be mitigated?
11. Are the FDIC's expectations (as provided by the FDIC resources
identified in this RFI) regarding capital adequacy and liquidity/
funding for prospective applicants sufficiently clear and
understandable? If not, what additional information or clarifications
could the FDIC provide?
12. Are there legal, regulatory, economic, technological, or other
factors separate from the application process that discourage potential
applicants from submitting applications for deposit insurance that the
FDIC should be aware of? If so, are there steps the FDIC could or
should take to mitigate the impact of such factors?
13. Are there any other suggestions that the FDIC should consider
for improving the effectiveness, efficiency, or transparency of the
application process, or for addressing any other interests or concerns
of stakeholders relative to the application process?
Appendix A--Resources
The following resources are accessible through the FDIC's public
website (https://www.fdic.gov/regulations/applications/resources/).
The resources aid organizers and other interested parties in
understanding the application process.
Part 303 of the FDIC Rules and Regulations, which
outlines procedures for the submission and review of applications,
including applications for deposit insurance.
The Interagency Charter and Federal Deposit Insurance
Application Form, which requests the information the chartering
authority and FDIC need to evaluate the application. The application
form provides general instructions, specific information fields,
supplemental guidelines for business plans, and a template for
financial schedules.
The SOP, which informs the process by which FDIC staff
evaluate the statutory factors described above.
Questions and answers related to the SOP, issued on
November 20, 2014, and on April 6, 2016, to help clarify
expectations for applicants in developing deposit insurance
proposals.
The Deposit Insurance Applications--A Handbook for
Organizers of De Novo Institutions (Handbook), which was issued for
public comment on December 22, 2016, and issued in final form on May
1, 2017. The Handbook is designed to help organizers become familiar
with the deposit insurance application process and the path to
obtaining deposit insurance.
The Deposit Insurance Applications Procedures Manual
(Manual) was issued for public comment on July 10, 2017, and
provides guidance for FDIC staff in the review and processing of
deposit insurance applications. The Manual was issued in final form
on November 1, 2018.
Dated at Washington, DC, on December 6, 2018.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-26811 Filed 12-11-18; 8:45 am]
BILLING CODE 6714-01-P