USA Law and Practice Contributed by: Edward P. O’Keefe, Neil T. Bloomfield, John A. Stoker and Kathryn (Kate) G. Wellman, Moore & Van Allen, PLLC
(the “Dodd-Frank Act”) established measures to prevent systemic risks, a framework for the regulation of derivatives, and the CFPB. Each bank regulator has implemented its own regulations that set out the licensing require - ments, permissible activities and investments, and safety and soundness operating standards applicable to the banks each regulates. These federal banking regulations are set out in Title 12 of the Code of Federal Regulations. 2. Authorisation 2.1 Licences and Application Process The specific licensing and application require - ments to charter a bank will vary based on the type of bank charter and whether the bank is chartered at the state or federal level. The OCC sets out its application and licensing require - ments for a national bank in its regulations and a licensing handbook. The process for chartering a national bank is set out below and is gener - ally representative of the process for other bank charter types as well. General Application Requirements Organisers of the proposed national bank must apply to, and receive approval from, the OCC before the bank engages in banking business. In reviewing an application, the OCC: • will ensure that the application is complete and required organisational documents for the bank have been filed, the required capital stock of the bank has been paid in, and the bank has at least five, and generally no more than 25, elected directors; • will take into account the bank’s plans to meet the credit needs of the communities in which it would operate;
• will consider: (a) whether the organisers are familiar with applicable banking laws and regulations; (b) the experience and competency of the proposed management team and direc - tors; (c) the bank’s business plan and the eco - nomic conditions and competitive consid - erations of the markets in which it plans to operate; (d) the sufficiency of the projected capital needs of the bank given the risks and complexity of its expected activities; (e) the reasonableness of the financial and profitability assumptions used in prepar - ing the pro forma financial statements that accompany the application; (f) the ability of the bank to operate in a safe and sound manner; (g) any public comments received in connec - tion with the published notice announcing the filing of the application; and • may consider the risks a proposed insured bank would pose to the deposit insurance fund and any questions regarding the permis - sibility of its corporate powers. National banks are required to specifically apply to exercise fiduciary powers and should include an application, if needed. A bank that intends for its deposit accounts to be insured must also file an application for deposit insurance with the FDIC. In addition, a BHC (or a company that would become one because of its proposed ownership interest in the new bank) is required to obtain approval from the Federal Reserve Board before the OCC will grant approval. The Licensing Process The bank’s organisers will generally hold a meet - ing with OCC staff to review the plans for the bank and raise any questions on the licensing
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