The Federal Deposit Insurance Corporation (FDIC) has introduced a proposal to streamline the bank merger review process. The initiative aims to modernize the regulatory framework and establish clear timelines for evaluating applications, addressing concerns that previous procedures were overly time-consuming.
The proposed rule includes a rapid processing framework for de minimis transactions, which involve small targets or specific operating subsidiaries. These could be approved in as little as five days. The agency also plans to account for credit unions and centrally booked deposits in its competitive effects analysis.
Chairman Travis Hill noted that the average time from application receipt to final action has already decreased from 107 days in 2023 and 2024 to 64 days in 2026. The new rules seek to codify these improvements and reduce the overall administrative burden on applicants.
The FDIC board approved the notice of proposed rulemaking unanimously. The agency will accept public comments on the proposal for 60 days following its publication in the Federal Register.
