The American Bankers Association supports a proposal to rescind a 2024 statement on bank mergers that expanded the factors taken under consideration when the FDIC reviews merger applications, the association said today in a letter to the agency.
The FDIC board last year voted along party lines in favor of a final statement on bank merger policy. In March, the now Republican-led board proposed to rescind the policy. ABA welcomed the move, saying the original policy created “significant uncertainty and subjectivity into the merger review process, potentially deterring beneficial transactions and impeding appropriate corporate reorganization within the banking sector.”
“By reverting to the prior policy framework, the FDIC restores clarity and predictability as it undertakes a more comprehensive reevaluation of its bank merger review standards,” ABA said.
