U.S. banks face the prospect of steeper regulatory hurdles when looking to merge with other lenders, according to a proposal from the Federal Deposit Insurance Corp. (FDIC). The public comment period for the proposal concluded on June 18, and the agency is now weighing contrasting views before deciding on its policy revamp.
In late March, the FDIC proposed revisions to its statement of policy (SOP) on bank merger transactions. These revisions would apply to all U.S. banks and give regulators more reasons to reject merger plans under a more rigorous “principles-based” approach, taking more direct account of the potential effects that a bank merger could have on financial stability, local communities, and competition.
