The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

OCC to rescind notable merger approval clause

The Office of the Comptroller of the Currency plans to revoke a rule that limits the amount of time it has to consider a merger application.

The agency, which oversees nationally chartered banks, issued a notice of proposed rulemaking to do away with a 1990s rule that requires merger applications to be considered approved on the 15th day following the end of the regulatory comment period. 

The OCC also plans to update its official statement of policy for mergers by identifying characteristics that would help or hinder deal approval. The agency also intends to provide more clarity over how it decides to extend public comment periods or conduct public meetings.

“This notice of proposed rulemaking follows the OCC’s comprehensive review of bank merger policy and regulations” which included a public symposium in February 2023, Acting Comptroller Michael Hsu said in a press release.

“The OCC continues to work with our interagency peers to update our analytical frameworks to best improve bank merger outcomes to benefit communities, enhance competition, and support a diverse banking system and looks forward to reviewing comments on the proposal,” he added.

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