FDIC approves deposit application for proposed Erebor Bank
Organizers of the proposed Erebor Bank in Columbus, Ohio, have received approval from the Federal Deposit Insurance Corp.
The proposed bank must have FDIC-compliant protocols for deposit account processing in the event of a bank failure and maintain a 12% minimum Tier 1 leverage ratio during its first three years of operations. The bank must also ensure access to additional capital via a capital call agreement if it falls below “well capitalized” standards.
Absent an extension, the approval would expire if Erebor is not established within 12 months.
The proposed bank aims to offer traditional banking products, along with virtual currency-related products and services, to businesses and individuals. The target market includes technology companies focused on virtual currencies, AI, defense, and manufacturing.