The Office of the Comptroller of the Currency today issued an interim final rule restoring its streamlined process for reviewing bank merger applications and rescinding other changes criticized by banks and lawmakers.
The OCC last year adopted a rule that ended its 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. The interim rule reverses that policy, bringing back automatic approvals.
Also last year, the OCC adopted a policy statement expanding what factors it takes into consideration when reviewing bank merger applications under the Bank Merger Act. The agency today rescinded that statement.
The OCC announcement came a day after the Senate voted in favor of a Congressional Review Act resolution to overturn the 2024 rule.
“The OCC’s actions today reduce burden and uncertainty for banks and supports a regulatory framework for bank mergers that is effective and not excessive,” Acting Comptroller Rodney Hood said. “Making it easier for well-managed and well-capitalized banks to merge promotes competition and facilitates economic growth and innovation.”
The American Bankers Association was among the groups that supported the resolution. In a statement, ABA President and CEO Rob Nichols called the agency’s announcement “a significant step toward restoring a streamlined and efficient process for considering bank merger applications.”
“This action, alongside the Congressional Review Act resolution led by Sen. Kennedy and Rep. Barr, provides an important opportunity to reset the conversation around bank mergers to ensure that future applications are subject to clear standards,” Nichols said. “We urge policymakers to continue working to finalize a merger framework that strengthens our financial system and helps banks better serve their customers and communities.”
