Promoting De Novo Banks

Practus LLPLegal Insights

de nova piggy bank receiving funds

Authored By Andrea Shaw

de nova piggy bank receiving funds

Representative Andy Barr (R-KY) has introduced federal legislation to try to encourage de novo banking in underserved areas.  We anticipate that H.R. 2561, known as the Promoting Access to Capital in Underbanked Communities Act of 2021,  will direct federal regulators to draft rules allowing de novo banks a window of up to three years to meet minimum capital requirements, as well as ease other regulatory burdens. We also expect that bill will direct federal regulators to create a mechanism to facilitate modifications by de novo banks to previously approved business plans, allowing them to be more nimble and entrepreneurial as they attempt to address the needs of new markets. (The text of the bill was not yet available at, however Representative Bar introduced similarly titled legislation that was unsuccessful in 2020.)  

According to the Independent Community Bankers Association there have only been 54 de novo banks chartered since 2010, compared to the more than 1,300 between 2000 and the great recession.

Practus will continue to monitor this legislation and provide updates when they are available.  You can obtain immediate status updates on the bill by clicking here:.

Andrea Shaw

attorney andrea j. shawPractus Attorney Andrea Shaw  specializes in bank and regulatory compliance.  She has extensive knowledge in consumer finance, bank regulation, and privacy law with more than 15 years advising both state and federally chartered banks.

Andrea has a deep understanding of the unique challenges clients face, and guides them through the process with clear communication and focus. As a regulator and counsel, Andrea has a passion for helping clients solve their most complex problems.

Attorney Phone Email
Andrea Shaw (207) 512-2683



Practus, LLP provides this information as a service to clients and others for educational purposes only. It should not be construed or relied on as legal advice or to create an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.