De Novo Banking: Insights from Barron’s on the Surge in New Bank Charters
In the News
Barron’s recently published an article featuring Bryant Moravek, examining the surge in applications for new, or “de novo,” bank charters.
“The OCC now wants applications in good shape on day one,” Bryant said. “It doesn’t want to play consultant.” Over the past 18 months, 40 charter applications have been filed with the OCC, nearly as many as the 48 received over the previous 13 years. Of those, 21 have been approved, two have been denied and the rest remain under review. Barron’s notes that about half of the applicants are crypto or fintech companies, and that one recent denial cited deficiencies in the applicant’s Bank Secrecy Act and anti-money laundering program.
A more receptive regulatory climate has opened the door for founders, fintechs and crypto firms seeking a national charter, but the bar for entry remains high. Applicants that arrive with a sound capital plan, experienced management and a well-built BSA/AML compliance program are better positioned to move through review without costly delays.
Read the full article in Barron’s
Considering a bank charter application? Connect with our Risk Advisory team to learn more.
Bryant Moravek, CCAS, CAMS, CGSS, Risk Advisory Services Principal at Kaufman Rossin, one of the Top 50 CPA and advisory firms in the U.S.
