The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

FDIC to seek comments on handling bank mergers

The Federal Deposit Insurance Corp. is moving forward on a request for comments tied to laws and regulations for bank mergers. 


The FDIC said on Friday that it had sent its proposal to the Federal Register for publication, which would start a 60-day period for public comments. The process will also seek comments on mergers between insured depository institutions and noninsured ones. 

“The FDIC is interested in receiving comments regarding the effectiveness of the existing framework in meeting the requirements of section 18(c) of the” Bank Merger Act, the agency said in the release. 

“Significant changes over the past several decades in the banking industry and financial system warrant a review of the regulatory framework,” the FDIC added.

The agency is seeking comment as to whether federal regulators should give more weight to financial stability risk when evaluating big bank mergers, suggesting $100 billion of assets as a theoretical threshold.

The request will also seek feedback as to whether the Consumer Financial Protection Bureau should be permitted to participate in the review process.

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