FDIC Rescinds De Novo Time Period Extension; Releases Supplemental Guidance on Business Planning — 2016-04-06

The Federal Deposit Insurance Corporation on Wednesday rescinded Financial Institution Letter (FIL) 50- 2009, Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions. The FIL, among other measures, extended the de novo period for newly organized, state nonmember institutions from three to seven years for examinations, capital maintenance, and other requirements. It was issued against the backdrop of an elevated number of newly insured institutions that had either failed or had been identified as problem banks during the financial crisis. Since the issuance of the guidance, the FDIC has adopted regulations and guidance that apply to all supervised institutions to strengthen their resiliency and risk-management practices. Further, the FDIC has enhanced its programs and procedures through a more forward-looking approach to supervision. Collectively, the processes and guidance address the supervisory objectives of the 2009 FIL.