FDIC Requests Comment on Revisions to Statement on Bank Merger Policy

The FDIC proposed amendments to its Statement of Policy ("SOP") on Bank Merger Transactions relevant to all insured depository institutions ("IDIs").

The proposed policy would replace the FDIC’s current SOP on Bank Merger Transactions. The FDIC stated that since the policy was last revised in 2008, "significant changes have occurred in the banking industry and financial system, including continued growth and consolidation ... [which] has significantly reduced the number of smaller banking organizations, increased the number of large and systemically important banking organizations, and contributed to the need for a review of the regulatory framework that applies to bank merger transactions subject to the BMA."

In the proposal, the FDIC provided a principles-based overview that describes the FDIC’s administration of its responsibilities under the Bank Merger Act. The proposal includes the scope of transactions subject to FDIC approval, the FDIC’s process for evaluating merger applications and the principles that guide the FDIC’s consideration of the applicable statutory factors. The proposal includes a discussion of each of these statutory factors, including: "competitive effects, financial and managerial resources, future prospects, convenience and needs of the community to be served, risk to the stability of the U. S. banking or financial system, and effectiveness in combatting money laundering."

According to the FDIC, the proposal, as now revised, reflects consideration of comment letters received in response to the FDIC’s March 2022 Request for Information and Comment on Rules, Regulations, Guidance, and Statements of Policy Regarding Bank Merger Transactions.

Comments on the amendments and policy statement are due 60 days from the date of publication in the Federal Register.