FDIC Approves Edward Jones Bank Deposit Insurance Application

FDIC Press Releases

Published February 27th, 2026

Detected March 12th, 2026

Summary

The FDIC approved the deposit insurance application for Edward Jones Bank, a Utah-chartered industrial bank. The approval is subject to certain conditions, including maintaining a minimum tier 1 leverage ratio and capital/liquidity support from its parent companies. The approval order expires if the bank is not established within 12 months.

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What changed

The Federal Deposit Insurance Corporation (FDIC) has approved the deposit insurance application for Edward Jones Bank, which will operate as a Utah-chartered industrial bank. This approval follows an evaluation under a statutory framework of seven factors and is subject to specific conditions. These conditions include maintaining a minimum nine percent tier 1 leverage ratio and requiring capital and liquidity support from The Jones Financial Companies and its subsidiaries. The FDIC's approval order is valid for 12 months unless extended.

This decision allows Edward Jones Bank to proceed with establishing its operations, focusing on securities-based loans funded by sweep deposits from existing clients. Regulated entities, particularly those in the financial services sector, should note the FDIC's rigorous evaluation process for new industrial banks and the specific conditions imposed. While this is an approval for a new entity, it highlights the FDIC's focus on capital adequacy, risk to the Deposit Insurance Fund, and community needs. The 12-month expiration of the order means Edward Jones Bank must be established within this timeframe to maintain its approval.

What to do next

Review FDIC's conditions for Edward Jones Bank's deposit insurance approval.
Monitor establishment progress of Edward Jones Bank within the 12-month approval window.

Source document (simplified)

FDIC Approves the Deposit Insurance Application for Edward Jones Bank, Salt Lake City, Utah

February 27, 2026 WASHINGTON – The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today announced the approval of a deposit insurance application submitted by the Jones Financial Companies, L.L.L.P. to establish Edward Jones Bank, which will be a Utah-chartered industrial bank.

Applications for deposit insurance are evaluated under a statutory framework of seven factors that include: the financial history and condition of the institution; the adequacy of the institution’s capital structure; the future earnings prospects of the institution; the general character and fitness of the management of the institution; the risk presented by the institution to the Deposit Insurance Fund; the convenience and needs of the community to be served by the institution; and whether the institution’s corporate powers are consistent with the purposes of the Federal Deposit Insurance Act.

Edward Jones Bank’s proposed business model will focus on providing securities-based loans nationwide funded by sweep deposits from existing clients of Edward D. Jones & Co., L.P., a subsidiary of the Jones Financial Companies. FDIC staff found that Edward Jones Bank satisfied the statutory factors for approval, subject to certain conditions and written agreements. Among other conditions, Edward Jones Bank will be required to maintain a minimum nine percent tier 1 leverage ratio. In addition, the Jones Financial Companies and two of its subsidiaries will be required to support the bank’s capital and liquidity positions.

The FDIC approval order expires if Edward Jones Bank is not established within 12 months, unless extended by the FDIC.