CBA Statement on FDIC and OCC’s Policy Changes on Bank Mergers and Acquisitions
WASHINGTON, D.C. – Consumer Bankers Association (CBA) President and CEO Lindsey Johnson today released the following statement in response to the Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency’s (OCC) policy changes regarding bank mergers and acquisitions (M&A):
“We are disappointed by today’s announcement from the FDIC and OCC regarding new restrictions on bank mergers and acquisitions. This decision undermines banks’ ability to grow, innovate, and better serve their customers in an increasingly competitive global market.
“Today’s policy changes make clear that banks won’t have the concise, transparent guidelines needed to merge or acquire another institution to meet consumers’ needs. By further muddying the waters in what is an already complex regulatory landscape, these policy changes are detrimental to America’s leading retail banks and the millions of consumers who rely on them each and every day.”
Background
The FDIC today adopted a Final Statement of Policy on Bank Merger Transactions (by a vote of 3-2, with Vice Chair Hill and Director McKernan dissenting. Generally, the Final Statement is focused on 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 Bank Merger Act’s (BMA) statutory factors. The FDIC’s Final Statement supersedes the prior FDIC Statement of Policy on Bank Merger Transactions 30 days following publication in the Federal Register.
The OCC approved today a final rule updating its procedures for reviewing applications under the BMA and adding a policy statement as an appendix that summarizes the principles the OCC uses when it reviews proposed bank merger transactions. The OCC’s final rule will be effective on January 1, 2025.
