FDIC Streamlines Branch Application and Relocation Rules
The Federal Deposit Insurance Corporation ("FDIC") amended its filing procedures to accelerate the approval process for branch establishments and relocations.
In its final rule, the FDIC updated 12 CFR Part 303 ("Filing Procedures") to eliminate certain filing requirements and reduce timelines for insured State nonmember banks seeking to open or move branches. The FDIC said the rule removes the requirement for public notice and comment for these specific filings, including the obligation to publish notice in local newspapers. The agency also introduced a specific exclusion for a "de minimis change in address"—such as moving to a direct line-of-sight location or within the same parking lot—which will no longer require a formal filing, provided the bank gives reasonable advance notice to customers.
The FDIC said the amendments were needed because: (i) the agency already possesses sufficient information through its supervisory programs to evaluate the statutory factors without requiring applicants to compile extensive data for routine changes; (ii) the public comment process for branch filings is not mandated by statute and historically has not yielded information that materially aids the FDIC's evaluation; (iii) requiring full applications for "de minimis" changes offers no significant supervisory benefit; and (iv) clarifying definitions, such as explicitly excluding "remote service units" (including interactive teller machines) from the definition of a branch, aligns regulations with technological advancements and reduces uncertainty.
The FDIC also adopted a change extending the expiration date for an approved filing from 18 months to 24 months to better accommodate construction and logistical delays. Additionally, the rule expands eligibility for expedited processing for intrastate branch and main office relocations to include institutions with a composite Uniform Financial Institutions Rating System rating of 3 or better.
The final rule will become effective on February 27, 2026.