Executive Summary
- What’s new: The FDIC announced a new two-phase approach to evaluating deposit insurance applications that provides for contingent authorization within 120 days followed by final approval within 12 months and includes coordination with the OCC and state authorities regarding charters.
- Why it matters: Regulators may be receptive to new and innovative bank charters, but they continue to expect applications to demonstrate operational readiness, managerial depth, credible financial support, and satisfactory compliance and risk-management frameworks at the time of filing.
- What to do next: Potential applicants will need to prepare a complete application package, prioritize recruitment of high-quality bank management and directors, use pre-filing engagement, document operations and plan for the second approval phase before receiving contingent authorization.
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On August 10, 2026, the Federal Deposit Insurance Corporation (FDIC) announced a new two-phase approach to evaluating deposit insurance applications. The revised process seeks to improve the speed and efficiency of review and, for applicants that satisfy applicable requirements, would provide a contingent authorization within 120 days of receipt of an application, followed by final approval within the ensuing 12 months after the applicants provide supplemental information and complete required organizational steps.
The shorter timetable should not be read as a relaxation of substantive review. To operate on an accelerated schedule, the FDIC expects applicants to place substantially greater emphasis on preparation before filing, including a comprehensive business plan, credible financial projections and assumptions, qualified management and directors, and coordinated submissions to the applicable chartering authority. Recent actions by the Office of the Comptroller of the Currency (OCC) point in the same direction: Regulators may be receptive to new and innovative bank charters, but they continue to expect applications to demonstrate operational readiness, managerial depth, credible financial support and satisfactory compliance and risk-management frameworks at the time of filing.
Following the FDIC’s announcement, Comptroller Jonathan V. Gould issued a statement commending the FDIC’s action and viewing it as “align[ing] with the OCC’s efforts to reverse the decline in de novo chartering by providing a clear and transparent application process that encourages new entrants to the banking system.”
The FDIC’s Two-Phase Process
Under the new approach, the FDIC will provide de novo applicants that satisfy the pertinent requirements with: (i) a contingent authorization within 120 days of receiving the application, detailing all pre-opening conditions; and (ii) final approval within the following 12 months, after the applicants provide additional information and complete key organizational steps. To see all the FDIC’s descriptions and annotations, see its summary of these two phases.
Phase I
To meet the 120-day timeline for contingent authorization, applicants must provide the FDIC with sufficiently detailed supporting materials as part of the initial submission. Among the required information outlined in the revised procedures, the application must be supported by a comprehensive business plan, credible financial projections with supporting assumptions for the first three years of operations, and qualified management and directors. The FDIC also expects applicants to simultaneously provide materials to the OCC (or the relevant state chartering authority, as applicable), and intends to coordinate communications concerning completeness and requests for additional information.
Phase II
During the second phase following contingent authorization, the FDIC expects to receive the supplementary application materials listed in the revised procedures. Applicants should submit these materials as soon as possible to allow timely ongoing review. The FDIC will continue to coordinate with other regulatory agencies to maximize efficiency, reduce redundancies and promote timeliness. When an applicant is ready to commence operations, the FDIC will confirm that all applicable pre-opening conditions have been satisfied.
Faster Processing Moves Work to the Front End
The practical consequence of the new framework is that applicants seeking to benefit from the 120-day timetable should treat the filing as a comprehensive submission, rather than one with informational gaps that can be filled through successive rounds of regulator comments. The application needs to (i) clearly define products and services; (ii) detail the operating model; (iii) include credible capital, liquidity and earnings projections; (iv) list experienced management; and (v) outline the governance, compliance and risk-management systems appropriate for a regulated bank.
Providing a complete initial application is particularly important for fintech and other nontraditional applicants. Novelty is not itself a barrier to approval, but a proposal that departs from traditional banking models may require more, not less, supporting detail. Regulators must be able to evaluate not only the legal permissibility of a proposed bank’s activities but also:
- How those activities will be conducted in practice.
- How associated risks will be controlled.
- Whether management has the necessary banking experience.
- Whether the institution can remain adequately capitalized and viable through a range of operating conditions.
Pre-filing engagement also becomes more valuable under an accelerated process. Organizers can use their pre-filing meeting and the period between the pre-filing meeting and submission of the initial application to (i) identify potential regulatory concerns, (ii) test key assumptions, (iii) align the materials submitted to the FDIC and chartering authority and (iv) resolve foundational issues before formal review begins.
Recent OCC Denials Offer Lessons for Future Applicants
On June 17, 2026, the OCC issued OCC Bulletin 2026-27, reinforcing the need for application completeness. In particular, the OCC may return an application as materially deficient when the submission lacks sufficient information to evaluate the applicable statutory or regulatory criteria, including before meaningful processing has occurred. The OCC also highlighted circumstances in which it would publicly deny a filing, including (i) where there are significant supervisory or compliance concerns; (ii) inconsistency with law, regulation or policy; or (iii) a failure to provide requested information.
The OCC demonstrated the seriousness of this warning by following it with two denials of charter applications. In July 2026, the OCC issued its first denial of a charter application under the current administration, citing AML deficiencies at the applicant’s proposed parent company and the absence of demonstrated competence relevant to the proposed national trust bank’s services among the proposed management team and board of directors. Earlier this month, the OCC denied a second application, this time for a full-service national bank charter, on the basis of, among other things, insufficient support for the proposed capital structure, gaps in relevant management and board experience, inadequately supported financial assumptions, concerns regarding profitability, and insufficient demonstrated familiarity with U.S. banking laws and regulations.
While the agencies continue to approve applications at a record pace, including applications involving nontraditional and digital-asset-related business models, we expect regulators to continue to do so only for applications that are complete and credible.
Some Lessons for Potential Applicants
These developments highlight several takeaways for potential applicants:
- Prepare an application to be a complete package when submitted. The application should not depend on repeated post-filing revisions to clarify or explain the business plan or demonstrate competence in key areas of concern, such as the quality of proposed management and directors, AML compliance or affiliate transactions. Shortcuts or clear gaps in the initial filing will result in delays and loss of credibility.
- Prioritize recruitment of high-quality bank management and directors. The proposed board and senior management will need to show experience relevant to the institution’s principal activities and demonstrate an understanding of the business plan in interviews and meetings with regulators.
- Provide a detailed, credible business plan. The three-year business plan is a critical component of the application process. The plan will need to address capital sources, liquidity assumptions, projected losses, profitability, funding needs and contingency plans.
- Document how the bank will operate, not just what it intends to do. Applications will need to discuss products and services in detail, with clear descriptions of the products and services themselves, the proposed management structure, governance and risk ownership.
- Use the pre-filing process. Early discussions with regulators and advisors can help surface issues that would otherwise consume the 120-day review period or place the application at risk of being delayed or denied. Take the time to address these issues before filing, rather than viewing them as a preview of the first set of questions from the agencies.
- Plan for the organization phase before receiving contingent authorization. Organizers will want to identify and prepare for anticipated pre-opening conditions, hiring, vendor contracts, capitalization, systems implementation, policies, testing and other organizational steps in advance so that contingent authorization can translate into final approval without unnecessary delay.
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The new FDIC review process provides a more structured approach, with clearly defined time frames and opportunities for closer collaboration between the FDIC and the OCC to meet intended action dates. The FDIC’s process also creates a meaningful opportunity for well-prepared bank charter applicants to obtain greater timing certainty. Taken together, the FDIC’s and OCC’s recent actions convey an important message: Speed is increasingly available, but only where application quality supports it.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.