FDIC Issues Request for Information on Bank Mergers

Recently the FDIC issued a Request for Information regarding the regulatory framework applicable to merger transactions involving one or more insured depository institutions.  The FDIC is seeking comments from interested parties concerning the effectiveness of the existing regulatory framework in meeting requirements under section 18(c) of the Federal Deposit Insurance Act, also known as the Bank Merger Act.  All comments must be received by May 31, 2022.

This request for information was not unexpected.  In a February 2022 press release, Acting FDIC Chairman, Martin J. Gruenberg announced five key FDIC priorities for 2022 and identified a review of the bank merger process as one of those priorities.  Acting Chairman Gruenberg stressed the importance of bank mergers in relation to competition, safety, and soundness.  He further stated that the Bank Merger Act had not been reviewed for 25 years and that a careful review was necessary.  For more information regarding the other FDIC priorities, WBK covered that press release here.