Federal Deposit Insurance Corporation considers faster branch approvals with automatic decisions, no public comments and de minimis move exemptions

The Federal Deposit Insurance Corporation is considering a proposal to streamline the process under which FDIC-supervised banks must obtain prior written FDIC consent to open or relocate a branch. The approach would shift routine cases to near-immediate, automatic approvals, remove the public comment step, and exempt certain minor branch facility moves from filing requirements. Acting Chairman Travis Hill linked the proposal to the FDIC’s average intake of more than 650 branch applications per year, which he described as a meaningful burden for both the agency and industry with limited supervisory value. Automatic approvals would be available to institutions assessed to meet the statutory criteria based on supervisory ratings and other objective criteria, while preserving the FDIC’s ability to object in exceptional cases such as an undercapitalized, loss-making bank seeking to open a high-cost branch. The proposed exemption for de minimis moves would apply to address changes where the surviving branch remains in approximately the same location. Hill indicated that comments will be sought on the proposal.