Regulatory Process For Forming Or Acquiring A Depository Institution

This third installment in our series of insights on bank charter considerations describes the process for seeking regulatory approval to form or acquire a bank.¹

Our first installment addressed the reasons why a nonbank provider of financial services might want to operate through a bank, the types of charters available, and considerations relevant to choosing the right charter. Our second installment addressed some of the consequences of operating through or controlling a bank.

Chartering Process

The application process for establishing a new full-service bank (whether federal- or state-chartered) generally takes at least one year. The process begins with the preparation of a detailed business plan, financial statements and projections, biographical information, operating policies and procedures, and various other application materials for submission to the chartering authority and other agencies with jurisdiction over the institution and its holding company,