FDIC Needs Improved Economy To Boost New Bank Creation

Law360, New York (April 8, 2016, 11:59 PM EDT) -- Recent moves by the Federal Deposit Insurance Corp. to spur new bank formation show that the regulator has opened the door for new market entrants, but experts say that investors looking to start banks will still be hampered by low interest rates and other market conditions.

The FDIC on Wednesday shortened the period that new banks would be subject to enhanced supervision and capital monitoring as well as to a requirement that so-called de novo institutions submit any significant change in business plans for review. The...
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