WASHINGTON – The Federal Deposit Insurance Corporation is now soliciting comments related to bank mergers, including between an insured depository institution and a noninsured institution.
The FDIC said it is seeking input on the application of the laws, practices, rules, regulations, guidance, and statements of policy that apply to merger transactions involving one or more insured depository institutions, and is interested in receiving comments regarding the effectiveness of the existing framework in meeting the requirements of the Bank Merger Act.
“Significant changes over the past several decades in the banking industry and financial system warrant a review of the regulatory framework,” the agency said. “This RFI is intended to help inform the FDIC's understanding and any potential policymaking in this area.”
The FDIC said it is encouraging comments from all interested parties within 60 days of publication in the Federal Register.
What’s Required
Under the Bank Merger Act, federal regulators are to consider a number of factors, including:
- The merger's effects on competition
- The convenience and needs of the communities to be served
- The financial and managerial resources and future prospects of the existing and proposed institutions
- The risk to the stability of the financial system.
DoJ Role
The Department of Justice also plays a role in the process, performing an independent review of bank mergers to report potential violations of antitrust laws.
The FDIC announcement comes in the wake of President Biden’s "Executive Order on Promoting Competition in the American Economy" aimed at addressing competition issues across the country. [
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