setting up a de novo bank

Setting Up A De Novo Bank

You’re on your way to starting a new bank. That’s great! However, getting into the banking industry though is not an easy thing to do. Banks receive scrutiny from many regulating bodies. This makes De Novo incredibly difficult, considering the finite resources afforded to most small banks.

Accume Partners is proud of the work we have done with previous De Novo banks. Growth is critically important for you. That’s why we operate as your partner, and free you to focus on business development, marketing, and operations.

De Novo Banks

A De Novo bank can be considered as a “startup bank”.  This is a bank that is newly chartered, and not purchased from an existing broker. State banks are considered De Novo when they are less than five years old. Commercial banks are considered De Novo when they choose to switch to a state bank after less than five years of age. This also entails an application process.

Industrial Banks or Thrift Banks also fall under De Novo if they convert to state banks.


Starting a De Novo bank requires approximately 10 to 30 million as startup capital. This amount can be pooled through investors or, such as in the case of local community banks, through locally raised funds.

Regulatory boards have been strict in seeing to it that banks are properly funded due to experiences from the great recession. Therefore regulatory boards have become much stricter when it comes to their requirements for capitalization.

Forming a business plan

The regulatory boards will want to know about your business plans. Vital information regarding the organizational structure, risk management infrastructure and other data will be asked and checked by the regulatory boards.

Having this in mind, you will want to form a good business plan for a market that will give your bank the best opportunity for growth.

If you are starting a De Novo bank, you will have to go through these basic steps:

  1. Submit your application to the FDIC

You will need important documents containing your business plan and, as mentioned above, all pertinent information related to the organizational structure.

  1. Wait for the FDIC and other regulatory boards to review your application.

Bear in mind there are at least two regulatory bodies that govern de novo banks. Your application will be reviewed by all regulatory boards that your de novo bank will fall under.

During the review, it is not unlikely for these boards to ask that you modify some parts of your business plan and even organizational structure. You will have to adjust and comply to their requests for approval.

3. Receive the approval from ALL regulatory agencies.

It’s about finding the right partner

Starting a de novo bank is a tedious process. There are many regulations that require strict compliance so you will need experienced experts on your side.

A de novo bank’s success will largely depend on finding the right partners, to work with you. We work with thousands of clients, many of which are De Novo, to take their business to the next level.

de novo expert