FDIC Solicits Comments on Bank Merger Regulations

The FDIC solicited comments on the current regulatory framework governing mergers of insured depository institutions.

The FDIC posited questions as to whether the current regulatory framework governing mergers of insured depository institutions adequately complies with requirements of Section 18(c) ("Regulations governing insured depository institutions") of the Federal Deposit Insurance Act, known as the Bank Merger Act. As highlighted previously, the FDIC announced its intention to undertake an interagency review of the bank merger process to ensure safety, soundness and financial stability. The FDIC said that the Bank Merger Act has not been reviewed comprehensively in 25 years and that increased bank consolidations have created systemic risk to the financial system that must be mitigated in accordance with mandates from Congress and the President.

Comments are due by May 31, 2022.