Due to recent bank failures, the U.S. FDIC announced today that they keep new banks under strict supervision for 7 years.
From Reuters:
WASHINGTON, Aug 28 (Reuters) - U.S. bank regulators said on Friday that they are extending the amount of time they keep new banks under strict supervision, saying recent bank failures have indicated that new institutions pose an elevated risk to the insurance fund that safeguards bank deposits.
The Federal Deposit Insurance Corp said it is extending its heightened supervision period to seven years, from three years. During this time, new banks -- known as "de novo" banks -- are subject to higher capital requirements and more frequent exams.
"Recent experience demonstrates that newly insured institutions pose an elevated risk to the Deposit Insurance Fund, particularly during an economic downturn," the FDIC said in a letter it sent on Friday to banks.
