A data and analytic firm which tracks the financial servicesindustry reports that regulators have not approved a new bankcharter since 2010, but that this trend might come to an end in2013.
|SNL Financial in Charlottesville, Va., said a combination offactors, including cautious regulators, the poor performance ofmany newly formed banks in the financial crisis and the loss offunds by many who would otherwise invest in new banks led to thedecline in new charters.
|Some industry observers have noted a similar drought in newinstitution charters among credit unions and suggested that something in NCUA's chartering process should bechanged, SNL said, but that a similar situation among banks impliesa wider economic trend might play a significant role.
|In fact, by comparison, credit union organizers have donesomewhat better than bank organizers, shepherding one new creditunion through the chartering process in 2011 and four in 2012,according to agency announcements. One of those four was aconversion from an existing bank.
|SNL cited local media accounts in Pennsylvania for its reportthat experienced bank executives in that state were involved in thenew chartering effort for what is being tentatively called theBank of Bird-in-Hand.
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