Stimulating Bank Investment By Simplifying Review

July 23, 2012

The Board of Governors of the Federal Reserve System on July 12, 2012, issued supervisory guidance, effective immediately, to enable applicants to obtain a prefiling review of a potential bank acquisition or other proposal before the submission of a formal application or notice. The Federal Reserve expects this program to be particularly helpful for community banking organizations, which typically do not file applications or notices on a frequent basis, and for investors with novel proposals.

This program could shorten and simplify the review of many formal filings. It would also provide a mechanism for investors to obtain feedback from the staff on critical issues before committing to a formal filing, which is subject to public notice and comment.