WASHINGTON — The American Bankers Association wasted little time in offering its thoughts after the Federal Deposit Insurance Corporation (FDIC) said it was seeking public comment on proposed revisions to a new Statement of Policy on Bank Merger Transactions.
According to the FDIC, the revised SOP reflects legislative and other developments that have occurred since it was last amended in 2008, including the establishment of the statutory factor regarding the risk to the stability of the United States banking or financial system.
“The revised SOP is principles based; describes the types of applications subject to FDIC approval; addresses each statutory factor separately; and highlights other relevant matters and considerations, such as related statutes pertaining to interstate mergers, and applications from non-banks or banks that are not traditional community banks,” the FDIC said.
‘Long Overdue, But…’
“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,” said ABA President and CEO Rob Nichols. “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,” Nichols continued in his statement. “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.”
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