| TO: | CHIEF EXECUTIVE OFFICER (also of interest to Directors and Executive Officers) |
| SUBJECT: | FDIC Introduces Electronic Submission of Branch Applications Through FDIC connect |
| Summary: | On December 19, 2003, the FDIC will begin accepting online applications for branch openings, branch relocations, and main office relocations from FDIC-supervised institutions using the Electronic Branch Application (EBA) – a new Internet-based application within the FDICconnect Business Center. |
The Federal Deposit Insurance Corporation (FDIC) is pleased to introduce a new e-government channel that enables FDIC-supervised institutions to submit branch applications electronically. The Electronic Branch Application (EBA), identified in the FDIC connect Business Center as “Establish or Relocate Domestic Branch or Office,” will become operational on December 19, 2003. This system can be used to submit an application to establish a domestic branch, relocate an existing branch or relocate the main office per Subpart C - Part 303 of the FDIC Rules and Regulations.
At this time, the system does not accept applications for merger transactions, establishing insured branches of foreign banks or foreign branches of domestic banks, interstate acquisitions of an individual branch or branches, or to provide notice of branch closings.
Background
FDIC connect is a secure, transaction-based e-government Web site for FDIC-insured institutions. In conjunction with the FDIC’s strategic goals to reduce regulatory burden and support the Government Paperwork Elimination Act of 1998, the FDIC is striving to improve existing business processes to enable more efficient and effective communication. The expansion of transactions available within FDIC connect will also help the FDIC reduce costs associated with paper applications and improve transaction-processing efficiencies.
Access to the EBA System Using FDIC connect
After a Designated Coordinator (Coordinator) has completed the registration process, users who have been approved by the Coordinator may access the FDIC connect Web site from www.fdic.gov by selecting “Quick Links for Bankers” then “FDIC connect .” EBA is a system located within the FDIC connect Business Center. The system’s user-friendly interface provides drop-down menus containing institution-specific data, help screens, and hyperlinks to applicable laws and regulations. Users simply answer a series of questions regarding the proposed transaction, then submit the application. Upon completion, FDIC connect will send the application data to the appropriate FDIC office for processing. Institutions should print the confirmation document containing the application data, have an authorizing official sign the confirmation document, and retain the document for their records. EBA also provides institutions the option to print an application summary for filing, along with the Conference of State Bank Supervisor’s Uniform Application/Notice, with a state banking authority.
Electronic branch applications submitted at 4:00 PM or later (local time) will be considered received the following business day. Submissions are processed under the same processing timeframes as paper applications, but without the delay caused by standard mail. Decisions on electronic branch applications will be communicated back to institutions through e-mail.
Registration Process
As explained in FIL-93-2003, issued December 8, 2003, each institution must designate and register a Coordinator. (See FIL-93-2003 to obtain the Designated Coordinator Registration Form.) The Coordinator registration is a multi-step process that will be explained at the time the Designated Coordinator Registration Form is received for processing. Only Coordinators must register with the FDIC using this process.
The Coordinator must be an institution employee. The Coordinator will be able to execute regulatory transactions and submit regulatory filings on behalf of the institution and its insiders. The Coordinator will also have the ability to provide other institution staff or other designated individuals access to transactions within FDIC connect via the FDIC connect user maintenance module. Since the FDIC will rely on the actions taken by the Coordinator and those users approved by the Coordinator, it is important that the institution choose the Coordinator carefully, and that controls be implemented to address operational risks inherent in online transactions. When a Coordinator is assigned, FDIC connect staff will provide that individual with technical guidance for using FDIC connect.
For more information, including information on registration, please contact the FDIC connect team toll-free at 1-877-275-3342, Option 5 on the Banker's Menu.
For your reference, FDIC Financial Institution Letters may be accessed on the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2003/index.html . To learn how to automatically receive FDIC Financial Institution Letters through e-mail, please visit https://service.govdelivery.com/accounts/USFDIC/subscriber/new.
Michael J. Zamorski
Director
Distribution
FDIC-Supervised Banks (Commercial and Savings)
Note
Paper copies of FDIC financial institution letters may be obtained through the FDIC’s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).