The FDIC has proposed rescinding the agency’s 2024 Statement of Policy on Bank Merger Transactions. FDIC officials said at the time of issuance that the Statement of Policy addresses the scope of transactions that will be reviewed, the process for that review and whether a proposed deal follows the standards established in the Bank Merger Act. Some banking groups, including the American Bankers Association, had previously questioned the board’s September Statement of Policy, saying that it did not provide the predictability and transparency needed in the process. The groups also said the proposal did not provide for more timely approvals of proposed mergers.
“The FDIC is pursuing this action in light of concerns that implementation of the 2024 Statement has added considerable uncertainty to the merger application process,” the agency said, in announcing the decision.
The FDIC said it will conduct a broader review of its bank merger process.
As a result, the FDIC reinstating—on an interim basis—the Merger Statement that was in effect before 2024, which had long existed in setting regulatory expectations. In order to conduct its contemplated broader review, the agency is also seeking public comment on returning to that statement on a longer term basis.
“The proposed reissuance of the Merger Policy Statement would be an interim measure while the agency conducts a broader reevaluation of its bank merger review process,” the FDIC said. The agency said it will solicit public comment on that proposal when it is released.
The FDIC approved the final Statement of Policy on Bank Merger Transactions on Sept. 17, 2024. The OCC and the Justice Department also issued updated standards for bank mergers. The three agencies acted separately, although officials noted that they had worked with the other agencies involved. We are not yet certain whether the OCC and Justice Department will also rescind their recent guidance.