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ABA: The American Bankers Association
Comment Letter

Letter to Rescind Bank Merger Policy Statement

  • From Ashtyn Landen
  • Published April 10, 2025

RE: FDIC Proposal to Rescind 2024 Statement of Policy on Bank Merger Transactions and Reinstate Prior Policy (RIN 3064–ZA45)
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The American Bankers Association (ABA) appreciates the opportunity to comment on the Federal Deposit Insurance Corporation's (FDIC) proposal (Proposal) to rescind the 2024 Statement of Policy (SOP) on Bank Merger Transactions and to reinstate, on an interim basis, the Merger Policy Statement that was in effect prior to 2024.

ABA supports the FDIC's decision to withdraw the 2024 SOP. The SOP introduced 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.

As outlined in ABA's 2024 comment letter, ABA has long maintained that a comprehensive review of the regulations and guidelines governing merger applications under the Bank Merger Act (and comparable applications under the Bank Holding Company Act of 1956) is essential to the continued health of the U.S. financial system. Many aspects of the current framework have not been meaningfully updated in over 25 years. During that time, the financial services landscape has transformed dramatically due to the rise of digital banking, interstate branch expansion, technological advances in marketing and communications, and the increasing prominence of nonbank financial companies, including fintech firms.

Given these developments, existing bank merger assessment standards used by the FDIC, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the U.S. Department of Justice no longer adequately reflect the realities of competition in today's marketplace, including in many rural areas. A modernized approach is urgently needed to ensure that merger reviews accurately capture competitive dynamics across the full range of financial products and services.

Download the comment letter to read the full text.

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