Notice of Proposed Rulemaking on Establishment and Relocation of Branches and Offices

July 15, 2025 / Source: FDIC

Summary:

The Federal Deposit Insurance Corporation (FDIC) is inviting public comment on a notice of proposed rulemaking (proposal) (PDF) to amend the FDIC Rules and Regulations governing the processes for an insured State nonmember bank to establish a branch or relocate a main office or branch. The proposal would also make corresponding changes to the processes applicable to the relocation of an insured branch of a foreign bank. 

The proposal would eliminate certain filing requirements, reduce processing timelines, and update public notice procedures. The FDIC also proposes to update certain related definitions to further streamline branch filing regulatory compliance obligations. 

The FDIC seeks comment on all aspects of the proposal. 

Statement of Applicability: The contents of, and material referenced in, this FIL apply to insured State nonmember banks and insured branches of foreign banks. 

Highlights:

• Expedited processing. The proposal would expand the type of filings that qualify for expedited processing and abbreviate the corresponding filing requirements. Under the proposal, an institution qualifying for expedited processing would be required to notify the FDIC in writing with: (1) a statement of intent, (2) the exact location of the branch or main office, and (3) for relocations, confirmation that advance customer notice was provided. The filing would be deemed approved within three business days after the FDIC’s receipt of a substantially complete filing. The FDIC would not have discretion to remove a filing from expedited processing.
  • Eligible depository institutions. An “eligible depository institution”¹ could be approved to establish a branch or relocate a main office or branch under expedited processing.
  • Branch relocations. An insured state nonmember bank with an FDIC-assigned composite rating of 3 or better under the Uniform Financial Institutions Rating System as a result of its most recent federal or state examination could complete an intrastate branch relocation under expedited processing.
• Public comment period. The proposal would remove the public comment period.
• Newspaper publication. The proposal would eliminate the requirement to publish a notice of the proposed change in the local newspaper.
• Rules of general applicability. The proposal would remove branch applications from the requirements in Sections 303.7 (public notice requirements) and 303.10 (hearings and other meetings) of the FDIC Rules and Regulations.
• De minimis exception. The proposal would establish a rule of construction within the definition of “branch relocation”² to exclude a “de minimis change in address,” which would be defined as occurring when a branch exchanges one physical facility for another within the same approximate location, such as where: (1) a direct line of sight exists between the two facilities, (2) the facilities share the same parking area, or (3) the facilities are located on contiguous properties or on the same block. A de minimis change in address would not be subject to an application requirement.
• Remote service unit. The proposal would adopt a definition of “remote service unit” (RSU) consistent with the definition used in the regulations of the Office of the Currency of the Comptroller. RSUs would remain excluded from the FDIC’s definition of “branch.”

FIL-35-2025Attachment(s)

Notice of Proposed Rulemaking on Establishment and Relocation of Branches and Offices (PDF)Related Topics

Applications and NoticesContact(s)

Division of Risk Management Supervision

Legal Division