The Office of the Comptroller of the Currency issued a statement advancing the agency’s priority to revive de novo bank chartering and encourage new bank formation on Aug. 11.
De novo bank applications — applications to charter a brand-new bank — have slowed dramatically over the past decade, with fewer than 10 new charters approved per year in most years since 2010, according to the OCC. The agency characterized the slowdown as a barrier to competition and financial inclusion.
Separately, Treasury Secretary Scott Bessent and Comptroller Jonathan Gould held a roundtable with Arizona community bankers on Aug. 6, promoting what the administration described as a community bank comeback, according to Treasury.
The decline in new bank formation has coincided with a wave of bank consolidation that has reduced consumer choice in many communities. The number of FDIC-insured institutions has fallen from approximately 8,300 in 2008 to fewer than 4,600 today, driven largely by mergers.
For Americans in communities that have lost bank branches, particularly rural areas and lower-income urban neighborhoods, the lack of new bank formation has contributed to the growth of banking deserts where residents lack convenient access to basic financial services.
No specific regulatory changes or streamlined application requirements were announced in the OCC’s statement. The agency’s public messaging, however, signals an intention to lower practical barriers to obtaining a new bank charter.
Community banks, defined as institutions with less than $10 billion in assets, play a disproportionate role in small business lending and agricultural credit. New community bank formation could address gaps in financial services that larger institutions have left unfilled.