ABA Statement on FDIC’s Proposed Statement of Policy on Bank Mergers

“While we appreciate regulators’ desire to update the framework governing bank mergers — a step that is long overdue — the FDIC’s proposed statement of policy raises several significant concerns. Because it lacks details about the updated competitive analysis, the new policy would introduce more unpredictability and potential delays into merger approvals, which could have serious adverse effects on banks seeking a merger. As we have said before, regulators’ goal should be to enable timely, efficient decisions on mergers under clear standards and with a transparent process.

“At a time when regulators are imposing major rule changes on the industry that will almost certainly force more consolidation, it’s ironic that they appear to be moving the goalposts and making it even harder for banks to combine. We will closely review today’s proposed policy statement and the recent OCC proposal and will be prepared to offer our comments, including whether the proposals comply with statutory requirements and enable banks of all sizes and business models to flourish.”