Getting a banking license in the United States means chartering a new bank: picking a national or state charter, assembling organizers and management who can pass a regulatory background review, raising enough capital to meet an 8 percent leverage ratio for the first three years, filing a combined charter and deposit insurance application, surviving a review that weighs seven statutory factors plus public comment, satisfying the conditions attached to any approval, and passing a pre-opening examination. If you want to know how to get a banking license, plan on years of preparation, millions of dollars in paid-in capital, and heightened regulatory oversight for seven years after you open.
Here is what the process actually requires, in the order you’ll face it.
Pick a Charter Type First
Every other decision follows from this one. A national charter puts your bank under the National Bank Act and the Office of the Comptroller of the Currency (OCC), and the bank’s name must include the word “national.”1eCFR. 12 CFR 5.20 A state charter puts your bank under the laws of the state where it is organized and the supervision of that state’s banking department. Your federal supervisor then depends on whether you join the Federal Reserve System: Federal Reserve members are supervised by the Fed, non-members by the FDIC.2Board of Governors of the Federal Reserve System. Understanding Federal Reserve Supervision
National charters give you one set of rules across every state, which can simplify multi-state operations. State charters sometimes allow activities a national charter does not, and some organizers prefer a state regulator they view as more accessible. Neither is universally better. The right answer depends on your business model, where you plan to operate, and what products you want to offer.
Who Approves Your Bank
Three federal agencies share bank supervision, each covering different charter types.2Board of Governors of the Federal Reserve System. Understanding Federal Reserve Supervision
- The OCC charters and supervises national banks and federal savings associations.
- The Federal Reserve supervises state-chartered banks that are members of the Federal Reserve System, along with bank holding companies.
- The FDIC insures deposits at virtually all banks and supervises state-chartered banks that are not Federal Reserve members.3HelpWithMyBank.gov. Who Regulates My Bank?
State banking departments regulate state-chartered banks under their own laws. If your bank will accept deposits, you also have to apply separately for FDIC deposit insurance, regardless of charter type. That application runs in parallel with your charter application and has its own review.
How Much Capital You Need
There is no single minimum dollar amount set across the board. The FDIC evaluates each proposal based on market dynamics, anticipated size, complexity, planned activities, and business model.4Federal Deposit Insurance Corporation. A Handbook for Organizers of De Novo Institutions What is fixed is the ratio: the FDIC expects every new bank to maintain a Tier 1 capital-to-assets leverage ratio of at least 8 percent throughout its first three years of operation.5Federal Deposit Insurance Corporation. Update on Key Policy Issues, Remarks by FDIC Acting Chairman Travis Hill
In practice that ratio sets your floor. If you project $100 million in assets by year three, you need roughly $8 million in Tier 1 capital on day one. Community bank formations typically raise $10 million to $30 million in initial capital, depending on the market and plan. For national banks, the OCC also requires that all capital stock be paid in before the bank opens.1eCFR. 12 CFR 5.20
Who Can Be an Organizer, Director, or Officer
Regulators scrutinize the people behind the bank at least as closely as the balance sheet. The OCC assesses whether proposed organizers are familiar with banking laws and whether management has the experience relevant to the services the bank will offer.1eCFR. 12 CFR 5.20 A national bank must have at least five elected directors, and the president (or the person performing that function) must sit on the board.6Office of the Comptroller of the Currency. Corporate Decision 1367
Every proposed director and senior officer completes an Interagency Biographical and Financial Report with detailed personal financial disclosures. Each regulator also runs its own name check with regulatory and law enforcement agencies and requires its own fingerprint submission; prints run for another agency are not accepted.7FedEZFile Fluent. Information – Interagency Biographical and Financial Reports, Name Checks and Fingerprints
Some criminal histories are automatic disqualifiers. Section 19 of the Federal Deposit Insurance Act imposes a lifetime ban on anyone convicted of an offense involving dishonesty, breach of trust, or money laundering from working at or participating in the affairs of any FDIC-insured bank. The bar covers theft, embezzlement, forgery, tax evasion, and writing bad checks. Pretrial diversion counts the same as a conviction. The only exception is a court order of expungement or an order to seal the record.8Federal Deposit Insurance Corporation. Your Guide to Section 19
What Goes in the Business Plan
The business plan is the center of the application. The OCC explicitly asks whether the proposed bank can reasonably be expected to achieve and maintain profitability.1eCFR. 12 CFR 5.20 Your plan must cover proposed services, target market, competition, and operational strategy, and it should explain what community need the bank will fill.
Pro forma financial statements do a lot of the work: projected balance sheets, income statements, and capital ratios. The interagency application form specifically requires electronic copies.9Federal Deposit Insurance Corporation. Interagency Charter and Federal Deposit Insurance Application Projections built on realistic market research survive review. Plans projecting rapid growth or heavy concentration in a single loan type draw extra questions.
Policies You Must Have in Place Before Opening
Your board has to adopt written policies and procedures covering all applicable laws before the bank opens. Bank Secrecy Act and anti-money laundering compliance gets particular attention: a full BSA/AML program with board-approved policies, trained staff, and procedures for identifying and reporting suspicious activity.6Office of the Comptroller of the Currency. Corporate Decision 1367 Federal regulations also require anti-money laundering programs and the filing of currency transaction and suspicious activity reports.10eCFR. 31 CFR Part 1020 – Rules for Banks
Risk management must address credit, operational, liquidity, and interest rate risk at a minimum, documented and ready at the first deposit, not built later. Technology systems must be secure and reliable, with customer data protections that meet interagency guidelines, and you need a physical security program that meets federal standards.
The Pre-Filing Meeting
The OCC normally requires a pre-filing meeting before a charter application is submitted, and waivers are rare. Before the meeting, organizers submit briefing materials: a description of the proposal, biographical information on each member of the organizing group, the identity of the proposed CEO, a summary of insider transactions, and the proposed capital amount.11Office of the Comptroller of the Currency. Comptrollers Licensing Manual – Charters
All organizers are expected to attend. FDIC staff often participate on deposit insurance questions, and Federal Reserve staff may attend if a holding company is involved. The agenda covers the board’s composition and experience, the management team’s banking background, submission requirements, and the business plan. Many proposals quietly end here when organizers realize how much they still need to assemble.
Filing the Application
The formal filing uses the Interagency Charter and Federal Deposit Insurance Application, a combined form that goes to the chartering authority (OCC for national banks, the state banking department for state banks) and the FDIC for deposit insurance.12Federal Deposit Insurance Corporation. Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions The package includes the completed form, the business plan with financial projections, biographical and financial reports for all proposed directors and officers, organizational documents such as articles of association or bylaws, and your proposed policies and procedures.
Filing fees accompany the application. Amounts vary by charter type and regulator, and state fees vary widely by jurisdiction. Within three business days of receipt, the FDIC sends a written acknowledgment and requests publication of the filing in a local newspaper if you have not already arranged that.12Federal Deposit Insurance Corporation. Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions Within roughly 30 days, the FDIC tells you whether the filing is substantially complete and accepted for processing or whether it needs more information.
How Regulators Decide
Once an application is accepted as substantially complete, the FDIC weighs seven statutory factors from Section 6 of the Federal Deposit Insurance Act:
- Financial history and condition of the proposed institution
- Capital adequacy
- Future earnings prospects
- Character and fitness of management
- Risk to the Deposit Insurance Fund
- Convenience and needs of the community to be served
- Consistency of corporate powers with the purposes of the FDI Act13Federal Deposit Insurance Corporation. Section 6 – Factors To Be Considered
The OCC uses a similar framework for national bank charters, guided by principles of maintaining a safe and sound banking system, encouraging fair access to financial services, ensuring regulatory compliance, and promoting fair treatment of customers.1eCFR. 12 CFR 5.20
Regulators then conduct a field investigation, typically wrapping up within about 60 days after the application is deemed complete. That includes in-person interviews with proposed management and site visits. Requests for additional information are common. The FDIC aims to act on deposit insurance applications within four months of accepting them as substantially complete, though complex proposals take longer.12Federal Deposit Insurance Corporation. Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions
Public Comment and CRA
Charter applications trigger a public comment period, generally 30 days from the date the public notice is published. Anyone can submit written comments to the OCC supporting or opposing the filing.14eCFR. 12 CFR 5.10 – Comments Comments from community members, competing banks, or advocacy groups can influence the review, especially on whether the proposed bank will meet the community’s credit needs. The Community Reinvestment Act factors in here: regulators evaluate whether the proposal will help meet the credit needs of the entire community, including low- and moderate-income neighborhoods.
Conditions You Must Satisfy Before Opening
Approval almost always comes with conditions that must be met before the bank can open. Based on recent OCC charter decisions, these typically include:
- Financial statements prepared on an accrual basis under generally accepted accounting principles.
- An independent auditor engaged to perform annual audits for at least three years after operations begin.
- Qualifying share ownership in the bank by each director.
- Adequate fidelity bond coverage against employee dishonesty, with the board considering the factors specified in federal regulation.
- Submission of biographical and financial reports and staff clearance for anyone subscribing to 10 percent or more of the initial stock offering before those shares are purchased.
- All operational policies completed before the pre-opening examination and formally adopted by the board at its first meeting.6Office of the Comptroller of the Currency. Corporate Decision 1367
Only after these conditions are satisfied do regulators conduct a pre-opening examination. If that examination is satisfactory, the OCC grants final charter approval and the bank can begin accepting deposits and making loans.
The First Seven Years
Opening day starts a seven-year period of heightened oversight. During this de novo period, the FDIC puts newly insured institutions on a 12-month risk management examination cycle; the extended 18-month interval available to established banks is not an option. A limited-scope exam happens within the first six months, and a full-scope exam within the first 12 months.15Federal Deposit Insurance Corporation. Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions
Any material change to the business plan during the de novo period requires prior FDIC approval. Making an unapproved change can trigger civil money penalties or enforcement action.15Federal Deposit Insurance Corporation. Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions Before the end of year three, you submit updated financial statements and a business plan covering years four through seven, including a strategic plan that addresses capital maintenance, dividends, branching, and products. Regulators spend these seven years verifying that the bank you described in your application is the bank you are actually running.