Planned de novo bank for New Canaan is canceled

Plans for a startup commercial bank that would have been Connecticut”™s first de novo bank in a dozen years have been scuttled.

The Hartford Business Journal reported the organizers of the proposed New Canaan Bank withdrew their application from the state”™s Department of Banking. The organizers submitted their application roughly one year ago and the department had granted the proposed bank a temporary certificate of authority this summer,

In a statement, the bank”™s organizers said the current economic conditions proved too discouraging for them to proceed.

Few new banks are being organized across the country. According to S&P Global, only 10 applications for de novo banks were filed this year ”“ onerous capital demands exacerbated by the rising costs of labor and technology coupled by higher capital requirements from regulators have been the primary reasons that fewer new banks are being created.