BANKCorridor/
LAT$NDollar
CommunityBANK/BankCharter
JulioAyala
ESCDirector/Treasurer
WHYSTARTABANK
U.S. Hispanic population hits new high
WHYSTARTABANK
Origins of the U.S. immigrant population, 1960-2015
WHYSTARTABANK
Languages spoken among U.S. immigrants, 2015
WHYSTARTABANK
COMMUNITY
Moreresponsivetocommunityneeds
Principallenderstosmallbusinesses
Accessibility:
Approximately1.2millionSalvadorannationals.
About3millionCentralAmericans
Mexicannationalsmakeupabout5millionindividuals.
WHYSTARTABANK
INVESTMENTOPPORTUNITIES
Newbanksattractnewinvestments.
Offerthepotentialforcapitalappreciationanddividendincometoinvestors.
Theaverageannualincomeis$32,000forLatino/Hispanicfamilies.
Translatestoabout$65billionincontributionstoLAcountyalone.
WHYSTARTABANK
OPPORTUNITY
Growthopportunitiesforlocalcommunities.
Easyaccessforsmallbusinessloans.
Moresaccesstopropertyandhomeloans
Remittanceservices
WHYSTARTABANK
Share of Latin America Remittances from Top Sending Countries
WHYSTARTABANK
Total Remittances Received by Selected Latin American Countries (2014)
DEVELOPINGAPLAN
Thefirststepinorganizinganewbankistobuildastrongbusinessand
strategicplan.Theplanmustconsidertheproposedbusinessofthenewbank,
itsfinancialandmanagerialresourcesandprospectsforsuccess,the
convenienceandneedsofthepublic,andtheeffectoncompetition.
Astrongbusinessandstrategicplansupportedbydetailedfinancial
projectionsandappropriatepoliciesandproceduresformthebasisof
successfulregulatoryapplicationsforabankcharter.Itunderpinsthe
expressedintentionsofthebankinraisingorganizationcapital.Anditguides
theactivitiesofthebankforseveralyearsfollowingtheopeningofthe
institution.
Encompassingmarketanalysis,businesslinesenumeration,resource
allocationsandconstraints,andsafetyandsoundnessconsiderations,theplan
formsthekeystoneoftheorganizingplan
BUILDINGTHETEAM
Thestrengthofthemanagementteamandboardofdirectorsisperhapsthe
mostimportantfactorinstartingabankandeffectivelyprovidingforitsfuture
success.
Tobeapprovedforanewbankcharter,theseniormanagementteammustbe
experiencedbankerswithahistoryofrelevantsuccessinthebank’sproposed
strategy.
Theboardofdirectorsshouldincludeindividualswithsuccessfulcareersina
mixofbusiness,banking,andotherfields,andhaverepresentationinthe
necessarydisciplinesfortheboardtomeetitsresponsibilities.
Theroleoftheboardandmanagementasinvestorsisimportant.Regulators
andotherinvestorswilllooktotheinvestmentofthedirectorsandsenior
officersasanimportantsignoftheircommitmenttothebank.
APPLYINGFORABANKCHARTER
Startingabankinvolvesalongorganizationprocess,andpermissionfrom
severalregulatoryauthorities.Extensiveinformationabouttheorganizers,the
businessplan,seniormanagementteam,finances,capitaladequacy,risk
managementinfrastructure,andotherrelevantfactorsmustbeprovidedtothe
appropriateauthorities.
Theproposedbankmustfirstreceiveapprovalforafederalorstatebanking
charter.Beforegrantingacharter,thecharteringregulatormustdeterminethat
theapplicantbankhasareasonablechanceforsuccessandwilloperateinasafe
andsoundmanner.
Next,theproposedbankmustobtainapprovalfordepositinsurancefromthe
FederalDepositInsuranceCorporation.Additionalapprovalsarerequiredfrom
theFederalReserveif,atformation,aholdingcompanywouldcontrolthenew
bankorastate-charteredbankwouldbecomeamemberoftheFederalReserve.
RAISINGTHECAPITAL
Oncesuccessfulintheregulatoryprocess,newbanksmustraisetheirinitialcapital
frominvestorsbeforetheycanopen.Asaconsultant,investorandinitscapacityasa
licensedbroker-dealer,Carpenterhasassistedorganizersinraisingbillionsofdollars
ininitialcapital.
Allinsuredbanksmustcomplywiththecapitaladequacyguidelinesoftheirprimary
federalregulator.Theguidelinesrequireabanktodemonstratethatitwillhave
enoughcapitaltosupportitsriskprofile,operations,andfuturegrowtheveninthe
eventofunexpectedlosses.
Newlyestablishedbanksaregenerallysubjecttoadditionalcriteriathatremainin
placeuntilthebank’soperationsbecomewellestablishedandprofitable.Webelieve
organizersshouldplanforeffectiveminimumcapitalof$25millionto$100millions.
Successfulcapitalgenerationintheseamountsisgenerallytheresultofawell
formulatedandexecutedplanfordevelopinglocalandotherinvestorsinthebank.
HIRINGACONSULTINGCOMPANY
ABOUT THIS CONSULTING COMPANY
ThisconsultingCompanystarts,investsin,andhelpsbuildbanks.For42
years,asanadvisorandinvestor,thisconsultinganditsaffiliateshavebacked
bankerswiththecapitalandinfrastructurenecessarytobuildstrong,valuable
banksandmeetthefinancialneedsofthecommunitiestheyserve.Asan
advisor,theyhavestartedhundredsofbanks,whichhavenowcollectively
growntoover$100billioninassets.Asaninvestmentmanager,theyraised
$280millionincapitalin2008and2009,whichwedeployedinto5bankswith
totalassetsof$5.3billion.
ThisconsultingcompanyisaUSbankholdingcompanyregisteredwiththe
BoardofGovernorsoftheFederalReserveSystemundertheBankHolding
CompanyActof1956.Theirteamincludesseniorbankers,regulators,
investmentmanagersandfinanceprofessionalswithstrongindustry
relationshipsandover150yearsofcollectiveexperienceinbank-related
investment,management,andoperations.
Costtohirethisconsultingfirmis$
InitialInvestmentis$