WASHINGTON—The FDIC board has unanimously voted to rescind a 2024 statement on bank mergers that expanded the factors considered in merger application reviews. They reinstated the prior policy that was in effect before the changes, the ABA Banking Journal reported.
Last year, the FDIC board voted to expand its merger review policy. It can now consider factors beyond deposits, like small business or residential loan volumes. The American Bankers Association said it supports updating competitive analysis but criticized the lack of transparency, predictability, and timely approvals in the new statement, the ABA Banking Journal explained.
In March, the three sitting members of the current FDIC board proposed reinstating the former policy. The board adopted the change at its meeting this week. In a financial institution letter, the FDIC said it expects to seek additional comments as it continues reviewing bank merger policy, the ABA Banking Journal said.
In a statement, American Bankers Association President and CEO Rob Nichols welcomed the board’s decision to rescind “last year’s flawed merger policy statement.”
“We hope this rescission, along with the OCC’s recent action on mergers, provides regulators an opportunity to ensure future decisions on bank merger applications are made promptly and are subject to clear standards,” he said. “We look forward to working with policymakers as they develop a revised merger framework that will strengthen our financial system and enable banks of all sizes and business models to flourish.”