2013 May See First New Bank Since 2010, Analytic Firm Says
A data and analytic firm which tracks the financial services industry reports that regulators have not approved a new bank charter since 2010, but that this trend might come to an end in 2013.
SNL Financial in Charlottesville, Va., said a combination of factors, including cautious regulators, the poor performance of many newly formed banks in the financial crisis and the loss of funds by many who would otherwise invest in new banks led to the decline in new charters.
Some industry observers have noted a similar drought in new institution charters among credit unions and suggested that something in NCUA's chartering process should be changed, SNL said, but that a similar situation among banks implies a wider economic trend might play a significant role.
In fact, by comparison, credit union organizers have done somewhat better than bank organizers, shepherding one new credit union through the chartering process in 2011 and four in 2012, according to agency announcements. One of those four was a conversion from an existing bank.
SNL cited local media accounts in Pennsylvania for its report that experienced bank executives in that state were involved in the new chartering effort for what is being tentatively called the Bank of Bird-in-Hand.