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CBAI Attends the FDIC Community Banking De Novo Outreach Meeting

The Community Bankers Association of Illinois (CBAI) Vice President Federal Governmental Relations, David Schroeder, attended the Federal Deposit Insurance Corporation (FDIC) Community Banking De Novo Outreach Meeting in Chicago on May 31, 2017. Approximately 50 interested individuals attended this meeting, which was the fifth of six outreach meetings across the country, to learn about the various FDIC initiatives to encourage newly chartered (de novo) bank formation.

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CBAI has consistently stated that de novo community banks are vitally important to maintaining a strong, growing, evolving and vibrant banking profession. While CBAI is disappointed by the declining number of community banks and the lack of new banking charters, recent remarks by FDIC’s Chairman Martin Gruenberg, and these outreach meetings, are encouraging signs that the FDIC will favorably act on applications for deposit insurance for de novo charters.

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The day-long outreach meeting included opening remarks by the FDIC’s Anthony Lowe (Regional Director), Doreen Eberley (Director, Risk Management Supervision) and James Watkins (Senior Deputy Director, Risk Management Supervision). An Application Process Panel included representatives from the Federal Reserve Bank of Chicago, Illinois Department of Financial and Professional Regulation, Office of Comptroller of the Currency and the FDIC. Presentations on the Business Plan Development Process, Management/Board Selection, Community Reinvestment Act (CRA) and Compliance Management Systems (CMS) were made by the FDIC. Also included was a banker panel which included CBAI member Steven Van Drunen who is the President and CEO of Providence Bank & Trust of South Holland. The panel members spoke about their insightful experiences with the application process and the organization of their community banks.

CBAI looks forward to seeing rapid and tangible results from these initiatives and a resumption of many de novo charters being approved by the FDIC.

June 5, 2017