WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a Federal Register notice seeking public comment on proposed revisions to the agency’s Statement of Policy (revised SOP) on Bank Merger Transactions.
“This proposed Statement of Policy would update, strengthen, and clarify the FDIC’s approach to evaluating mergers under the Bank Merger Act,” said Chairman Martin J. Gruenberg. “Given the rapid pace of change and consolidation in the banking industry today, it is vital that the FDIC provide guidance on how it would apply the critical statutory factors under the Bank Merger Act relating to competition, financial resources, the convenience and needs of communities, financial stability, and money laundering. We look forward to receiving thoughtful public comment on the proposal.”
The revised SOP reflects legislative and other developments that have occurred since it was last amended in 2008, including the establishment of the statutory factor regarding the risk to the stability of the United States banking or financial system. The revised SOP is principles based; describes the types of applications subject to FDIC approval; addresses each statutory factor separately; and highlights other relevant matters and considerations, such as related statutes pertaining to interstate mergers, and applications from non-banks or banks that are not traditional community banks. Further, the revised SOP reflects consideration of comment letters received in response to the FDIC’s March 2022 Request for Information and Comment on Rules, Regulations, Guidance, and Statements of Policy Regarding Bank Merger Transactions.
In a separate Federal Register notice, the FDIC, as part of its obligations under the Paperwork Reduction Act of 1995, invites comment on the renewal of the existing information collected in the FDIC Supplement to the Interagency Bank Merger Act application form (OMB Control No. 3064-0015).
The FDIC encourages comments from all interested parties within 60 days of publication in the Federal Register.