Maryland Legal Alert for Financial Services
FDIC Introduces Two-Phase Approach for Deposit Insurance Applications
On August 10, 2026, the Federal Deposit Insurance Corporation (FDIC) announced a new two-phase approach for evaluating deposit insurance applications to encourage new bank formations and make the application process more efficient. The FDIC will now place greater emphasis on preparation before filing. Additionally, applicants must simultaneously submit application materials to the FDIC and the Office of the Comptroller of Currency or other applicable state chartering authority.
Phase 1: Applicants must submit a comprehensive business plan, credible financial projections with supporting assumptions for the first three years of operations, and the identities of qualified management and directors. The FDIC will issue a contingent authorization within 120 days of receiving a substantially completed application.
Phase 2: Within 12 months following the contingent authorization, applicants must submit supplementary materials as specified in the revised provisions, including final organizational documents, final risk management and compliance policies and procedures, internal operating controls, updated financial projections, and additional required documentation. Applicants are encouraged to submit materials on a rolling basis as they become available to facilitate timely ongoing review. Once an applicant notifies the FDIC that the institution is ready to commence operations, the FDIC will verify that all pre-opening conditions have been satisfied.
Applicants are strongly encouraged to meet with FDIC staff and other applicable regulatory agencies prior to filing a Phase 1 application to facilitate open communication. Throughout the process, the FDIC coordinates with other regulatory agencies regarding the application. The FDIC expects applicants to submit robust and complete Phase 1 applications. Applicants should not rely on post-filing revisions to cure or supplement deficiencies in Phase 1 applications.
For specific required documents in Phase 1 and Phase 2, please refer to the FDIC’s guidance on its two-phase approach for processing deposit insurance applications: FDIC’s Two-Phase Approach for Processing Deposit Insurance Applications.
For more information concerning this topic, please contact Christopher R. Rahl or Peri L. Schuster.
Christopher R. Rahl
410-576-4222 • crahl@gfrlaw.com
Peri L. Schuster
410-576-4005 • pschuster@gfrlaw.com