Expert Guidance From CCH On How To Charter A Commercial Bank Lays Groundwork For Successful New Venture

(RIVERWOODS, ILL., November 15, 1999) – Whether you’re an entrepreneur contemplating entry into the banking arena, a professional advisor for a de novo project or deciding whether to invest in such an undertaking, the new guide How to Charter a Commercial Bank from CCH INCORPORATED (CCH), a leading provider of business and regulatory law information and software, is certain to become one of your most valuable resources. This essential reference on the complexities of establishing a de novo bank guides you through all of the stages of development, from preparing the necessary applications to raising capital, forming a business plan and other fundamental steps.

"Although regulatory matters are of critical importance, establishing a successful de novo bank requires far more than just regulatory compliance," according to CCH banking product manager Peggy Hayner. "How to Charter a Commercial Bank not only helps you create a solid regulatory and legal foundation for a de novo bank, but also takes you through each step of the business planning needed to help your venture succeed."

How to Charter a Commercial Bank lead author Dr. Douglas V. Austin – an authority on financial institution management – provides detailed information on both the technical and practical requirements for establishing a de novo bank. Joined by banking experts and co-authors David F. Anderson and Steven A. Bires, Austin leads you through each phase of the chartering process, providing real-life insights and practical advice to help you make informed decisions at every stage. The authors’ expertise, combined with input from senior executives who are veterans of recent bank start-ups, help you create a sound foundation for your institution or investment decision.

Comprehensive Coverage, Real-Life Experience

How to Charter a Commercial Bank provides in-depth coverage of every step of the chartering process, including whether you should even begin the process, and includes handy checklists and timelines to help ensure your success.

The guide begins its exploration with a review of the chartering environment, and how the banking industry got to where it is today. Next, the valuable reference tool takes a look at bank charter activity in recent years, covering performance, locations and numbers.

With this authoritative information as a foundation, How to Charter a Commercial Bank then leads you through the decision of whether you should consider chartering a state or national bank, explaining the differences in the regulatory landscape and the effects of those differences. The guide also carefully examines bank holding companies and their impact on chartering commercial banks, as well as the type of bank to consider chartering: Brick and mortar institutions or Internet banks?

After helping you reach a decision on whether to proceed with a venture, How to Charter a Commercial Bank provides you with comprehensive, step-by-step guidance through final charter approval. The guide covers:

How much time the process will take – and where it’s likely to get bogged down;
Creating an achievable and successful business plan;
Raising capital;
Costs you must prepare for, including which ones will pack the biggest wallop;
How to determine what type of commercial bank to charter;
Selecting the strongest incorporators, directors and management;
Operational considerations;
Applications – such as state and national commercial bank charter applications, FDIC Insurance application, and Federal Reserve System Membership application – and the applications processes;
How to determine a location for your bank;
What to do after receiving tentative approval; and
Pre-opening examinations and analysis – receiving the final charter approval.

"It’s clear that starting a de novo bank is a significant undertaking that carries risk," said Hayner. "How to Charter a Commercial Bank gives you an edge on success. It not only identifies all of the issues entrepreneurs and investors need to consider, but also offers the tremendous value of guidance from banking industry experts who know this process inside and out and have a solid track record of success."

About the Authors

Long recognized as one of the preeminent experts in the field, Dr. Douglas V. Austin has been providing consulting and advisory services to commercial banks for over 30 years. An attorney and a retired professor of finance, he often serves as an expert witness in business and banking litigation cases. A frequent speaker before national and state bank associations, Dr. Austin’s insights into the complexities of financial institution management have benefited thousands of professionals.

Dr. Austin is a former economist for the Federal Reserve Bank, and currently heads Austin Financial Services, Inc., a financial institution consulting firm. He is the author of more than 17 books and hundreds of articles published on banking and finance.

David F. Anderson has spent his entire career in the banking industry and is a frequent speaker on bank operations, sharing his experiences in chartering de novo banks. He is now the President of Imagic Corporation and the Vice-Chairman of Private Business, Inc., which are based in Nashville. Mr. Anderson also serves on the board of directors of an Iowa bank.

Steven A. Bires is a lawyer who has been assisting organizers in chartering commercial banks for nearly a decade. He is an expert in merger and acquisition analyses and financial institution valuations. Currently, he serves as the Vice President of the Toledo-based financial institution consulting firm, Austin Financial Services.

Pricing and Availability

To order, or for more information on How to Charter a Commercial Bank, click here, call 800-449-6435, or visit the CCH Business and Finance Group web site at http://business.cch.com. The loose-leaf publication is priced at $350, plus appropriate tax, shipping and handling.

About CCH INCORPORATED

CCH INCORPORATED, headquartered in Riverwoods, Ill., was founded in 1913 and has served four generations of business professionals and their clients. The company produces more than 700 electronic and print products for the tax, legal, securities, human resources, health care and small business markets. CCH is a wholly owned subsidiary of Wolters Kluwer U.S. The CCH web site can be accessed at www.cch.com.

-- ### --

nb-99-108