The Office of Thrift Supervision (OTS or Office) is today proposing a regulation incorporating, with certain changes, its current statement of policy on ``de novo'' applications for a federal savings association charter (Policy Statement). The proposed changes are intended not only to make the Policy Statement into a regulation, but also to conform it with current law and to facilitate the application process by simplifying the regulatory scheme, thereby reducing the cost of compliance. The Federal Home Loan Bank Board (FHLBB), the OTS's predecessor agency, originally promulgated the Policy Statement to provide specific guidance on the content of de novo applications. Many provisions in the current Policy Statement have, however, become obsolete or redundant, or are otherwise unnecessary, as a result of changes in federal laws and regulations addressing capital adequacy, business plans, officer and director qualifications, insider conflicts of interest and transactions with affiliates. These revised statutes and regulations now adequately address many of the issues previously covered by the Policy Statement. Because the remaining revised OTS de novo provisions contain requirements, not merely guidance, the OTS believes that they should be recodified as a regulation.