The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved the deposit insurance application for Erebor Bank, N.A., a new national bank that will be based in Columbus, Ohio. The approval allows Erebor Bank to move forward as a newly chartered institution.
Erebor Bank previously received preliminary conditional approval for its national bank charter from the Office of the Comptroller of the Currency on October 15, 2025. The bank’s business model is focused on offering deposit and lending services to both businesses and individuals operating in sectors such as technology, payment systems, investment, defense industries, and participants in virtual currency markets.
The FDIC evaluates applications for deposit insurance based on seven statutory factors: financial history and condition; adequacy of capital structure; future earnings prospects; management character and fitness; risk to the Deposit Insurance Fund; convenience and needs of the community served; and whether corporate powers align with the Federal Deposit Insurance Act.
According to the FDIC, Erebor Bank met these requirements but must adhere to specific conditions. These include implementing protocols for processing deposit accounts if there is a bank failure, maintaining at least a 12 percent tier 1 leverage ratio during its first three years, and ensuring that if it falls below required capital levels or ceases to be “well capitalized,” it must use its Capital Call Agreement rights to secure enough capital to restore this status.
The order from the FDIC Board will expire if Erebor Bank is not established within twelve months unless an extension is granted by the agency.
