The American Bankers Association on Monday said that while it supports efforts by the Office of the Comptroller of the Currency to reassess how it evaluates bank merger applications, it had several concerns with the proposal, including a push by the agency to end the time limit for automatic approvals of mergers.
The OCC in January released a policy statement detailing how it would analyze future merger and acquisition applications, with a focus on separating mergers that can be quickly approved from those that require more scrutiny. As part of that effort, the OCC proposed ending the practice of automatically approving merger applications on the 15th day after the close of the comment period unless the agency takes action to remove the filing for expedited processing.
In its letter, ABA urged the OCC to withdraw the proposal to end automatic approvals, saying it would be a change not based on any evidence of increased risk or result in any increased benefits. The association also urged the OCC to continue to permit streamlined bank merger applications in circumstances currently allowed, sought clarification on the OCC’s list of factors weighing for and against approval of applications, and said that the agency’s factors for elevating a proposed merger’s community effects should be consistent with its evaluations of an institution’s performance under the Community Reinvestment Act.
“In principle, ABA strongly supports OCC’s objective to go beyond retail deposits as a proxy for market power,” the association said. “Nevertheless, much important remaining work lies ahead, and banks must be able to plan strategically under clear, transparent standards for the healthy growth and innovation of their institutions and the future delivery of service to their customers and communities.
