State of Connecticut Department of Banking

Apply for an Innovation Bank Charter

Section 36a-70(t) of the Connecticut General Statutes permits the organization of an innovation bank that does not accept retail deposits, as defined in Section 36a-2(56), and for which federal deposit insurance from the Federal Deposit Insurance Corporation (“FDIC”) is not required. This charter-type is ideal for entities performing financial-related activities such as wholesale banking and merchant banking. An innovation bank has all of the powers of and is subject to the requirements and limitations applicable to an FDIC insured bank, except an innovation bank cannot accept retail deposits and does not need to comply with community reinvestment laws.  

Key Requirements/Qualifications
  • Innovation banks are not permitted to accept retail deposits;
  • Minimum capital of $5 million or as determined by the Commissioner in his discretion based on the entities business plan;
  • One-time application fee of $15,000.00;
  • Certificate of Incorporation filing with the Connecticut Secretary of State;
  • Establishment of a $1 million pledged-asset account with an approved bank;
  • Character and experience assessments of the entity’s executive management team (including biographical and financial report submissions); and
  • Preparation of a feasibility study.
Applicable Fees
  • Application fee: $15,000.00.
  • Application fee must be paid at the time that the formal application is submitted to the Department of Banking.
  • Please note that applications will not be processed or considered received until the full application fee is paid. 
How to Apply
  • Schedule a meeting with the Department of Banking to discuss application logistics and requirements (this should occur at least 30 days prior to the planned submission of a draft application).
  • Submit draft application.
  • Department of Banking will review and provide feedback on the draft application.
  • Resubmission of draft application may be required for additional review.
  • Submit formal application.
  • Department of Banking orders feasibility study within 20 days of receipt of application (see Conn. Gen. Stat. Sec. 36a-70(d)).
  • Public Hearing is scheduled by the Department of Banking upon receipt of the feasibility study to occur within 30 days of receipt of the feasibility study (See Conn. Gen. Stat. Sec. 36a-70(e)).
  • Temporary certificate may be issued upon the Department of Banking’s satisfactory review of all application materials submitted, including receipt and review of the feasibility study.
  • An examination of the entity is performed after the entity has been fully organized according to law and is in receipt of its temporary certificate.
  • A final certificate may be issued after examination findings have been addressed by the entity and the Department of Banking has determined that applicable requirements of 36a-70 are appropriately met.

Items to Include in the Application

  • Draft Certificate of Incorporation;
  • Business Plan;
  • Pro-Forma Financials for at least 3 years;
  • Description of the Organizers, Directors and Executive Management Team;
  • Policies and procedures of the organized entity;
  • Interagency biographical and financial reports for the entity’s organizers, directors and officers; and
  • Application fee of $15,000.00.

Applicants are strongly encouraged to use the "Interagency Charter and Federal Deposit Insurance Application" for their submission - see below.

Forms
Contacts

Danzel Palmer, Director, Financial Institutions Division

Matt Saunig, Senior Assistant Director, Financial Institutions Division

Joseph Wallace, Banking Department Manager