FDIC Amends Branch Application Procedures

The FDIC recently adopted a final rule that revises the application requirements for banks establishing or relocating branches or offices.  Specifically, the final rule amends the FDIC’s regulations by removing the National Historic Preservation Act of 1966 (NHPA) and the National Environmental Policy Act of 1969 (NEPA) requirements in its branch application procedures, and it rescinds the FDIC’s statements of policy concerning NHPA and NEPA.  The changes made by the final rule will go into effect on December 14, 2020.

NHPA and NEPA were enacted by Congress to limit the impact of federal government initiatives on historic preservations and the environment, respectively.  Historically, the FDIC had interpreted them as applying to a limited number of applicants, namely, for deposit insurance for de novo institutions and applications by state nonmember banks to establish a domestic branch and to relocate a domestic branch or main office.  Pursuant to the FDIC’s regulations, applicants were generally required to provide statements regarding their compliance with NEPA and NHPA.

Following an internal review, the FDIC concluded that “consideration of the NHPA and the NEPA is not required by law and is an unnecessary regulatory requirement of the branch application review process.”  As noted by the FDIC, these changes bring the FDIC’s procedures in alignment with the branch application procedures for national banks and insured state member banks that are supervised by the OCC and the Federal Reserve Board.